Higher expenses and lower interest income hit profitabilty of the education and healthcare provider
Amanat second quarter net profit slides 17 per cent
Amanat, the Dubai-listed education and healthcare provider, on Thursday reported a 17 per cent a slide in second quarter profit as expenses rose and interest income dipped.
Net profit attributable to equity holders for the three months ending in June came in at Dh11.9 millioncompared to Dh14.3m last year.
Total operating expenses in the second quarter rose 4.6 per cent to Dh10.2m from Dh7m a year earlier. Interest income slipped 8.6 per cent to Dh14.1 from Dh15.5.
For the first half of the year, net profit was Dh25m, a 4.8 per cent increase compared to Dh23.8m in a year-earlier period
“During the first half of the year, [the company] was also focused on initiatives to drive diversification of the customer base and cost improvements,” Amanat said in a statement.
The company said in January it had acquired a minority stake in Saudi Arabia’s International Medical Centre (IMC) as the kingdom continues its privatisation efforts. Amanat said that it had been working to increase its growth in Saudi Arabia, targeting Jeddah and Riyadh, through IMC as well as through its 33.25 per cent stake in Jeddah-based Sukoon International Holding, which offers extended care and critical care services.
In educational services, Amanat is working with “key shareholders and management in identifying potential growth prospects that focus on expanding the business and increasing student capacity”.
Khaldoun Hasan, chief executive of Amanat, said that the company had continued its strategy through the second quarter to support growth plans. “We are excited about the next period of our growth as we look to expand our portfolio by investing in other differentiated businesses that have proven leaderships across key GCC markets,” he said.
The company’s shares were flat at Dh1.12 in midday trading.