Clinic chain Rhoen says COVID regulation to weigh on 2020 earnings
07/05/2020 06:28
FRANKFURT, May 7 (Reuters) - German clinic chain Rhoen
Klinikum AG RHKG.DE expects the effects of "excessive"
hospital regulation in the coronavirus crisis to weigh on its
2020 earnings as planned surgeries are being postponed to keep
intensive-care beds free for COVID-19 patients.
"We do not believe that the regulations which are included
in the COVID-19 Hospital Relief Act will be enough to compensate
the significant losses", the company said on Thursday as it
reported a drop in first-quarter core earnings by half.
"We are also observing with great concern that far fewer
patients who should be visiting the emergency outpatients
department given the severity of their conditions, such as
heart attack and stroke, are avoiding being admitted there out
of fear of being infected by the virus."
Earnings before interest, tax, depreciation and amortization
came in at 13.9 million euros ($15.01 million), compared to 28.7
million in the year-earlier period, while revenues edged up to
333 million euros.
Costs related to the 1.2 billion takeover offer by peer
Asklepios also hit first-quarter earnings. These will add up to
6-7 million euros in the full year, Rhoen said. urn:newsml:reuters.com:*:nL5N2AS7TS
Rhoen's management and supervisory board reviewed the offer
and concluded that the offer price of 18 euros per share is
adequate, the company added.
Rhoen expects to post revenues around 1.4 billion this year
and EBITDA of 72.5-82.5 million euros, it said.
($1 = 0.9263 euros)
(Reporting by Arno Schuetze
Editing by Michelle Martin)
((arno.schuetze@thomsonreuters.com; +49.69.7565.1197; Reuters
Messaging: arno.schuetze.reuters.com@reuters.net))