Johannesburg - No 2 private hospital group Life Healthcare [JSE:LHC]
fell short of market expectations for its full-year profit on Friday, after it wrote down the value of a business.
Life Healthcare said diluted headline earnings rose 18% in the year to end-September, to 141 cents per share, below the average estimate of 144c in a Thomson Reuters poll of nine analysts.
Headline EPS, the primary profit gauge in South Africa, strips out certain one-off items.
The company's rehabilitation and mental health unit reported lower profit due to a writedown at one of its hospitals.
Shares in Life Healthcare dropped 3.6% to R32 by 09:29, lagging behind a slightly lower JSE All-share index.
Demand for private healthcare is increasing in South Africa as a fast-growing middle class take up medical insurance. Life Healthcare said revenue increased 11.5% to R11bn.
Shares in the company are up about 60% so far this year, outpacing a 15% gain the JSE All-share index over the same period.
Larger Rival Mediclinic International [JSE:MDC]
reported a 45% surge in first-half profit, helped by a robust showing in its South African business. Netcare, which has flagged as much as 20% drop in full-year profit, is due to report next week.
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