Netcare eyes healthy profits

Johannesburg - Hospital group Netcare Ltd expects to report 25%-35% rise in full-year profit boosted partly by savings on finance costs due to lower interest rates.

Netcare, which runs private hospitals in South Africa and Britain, said on Thursday headline earnings per share were also bolstered by lower interest-bearing debt arising from the proceeds on the sale the Ampath Holdings.

Demand for private healthcare in South Africa has increased in recent years as a fast-growing middle class signs up for health insurance.

Netcare, which has forecast double-digit second half revenue at its domestic unit, expects basic EPS to rise between 90%-100%.

Earlier this week, rival Medi-Clinic posted a rise in interim profits due to a rise in occupancy and income per bed-day and said it was optimistic for the next six months.

- Reuters