REPORTING SEASON: Medibank Private (MPL)

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Figure 1: Medibank Private Limited 12 month chart


Medibank Private (MPL) first solo results in line with IPO expectations

 Health insurer Medibank Private (MPL) reported its first half year result since listing on the ASX in November 2014. MPL’s NPAT, on a Pro forma basis, increased by 10.8% to $151.2 million in line with the company’s prospectus guidance.

 Health Insurance Premium revenue increased by 5.2%, but this is below regular growth because of a slight decline in market share and cheaper products offered. The number of principal policyholders lifted by 0.9% while membership lapse rates also increased slightly. Health Insurance gross profit increased by 6.4% as margins lifted by 20 basis points, helped by lower employee costs and internal efficiencies.

 Complementary Services revenues fell by 8.2% after losing the Australian immigration contract from July 2014. Industry-wide health claims costs continue to be driven by increasing hospital utilisation rates and health cost contract inflation.

 Cash in hand fell over the period due to the cost of the IPO and the $238.8 million dividend paid to the Commonwealth prior to its listing. The cost of the IPO was $5.8 million in transaction costs.

 The company said that a continued focus on Medibanks market share and improved customer satisfaction will be the key to future growth. MPL also confirmed it still plans to pay its first dividend in September 2015.


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Juliana Roadley, Market Analyst,