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REPORTING SEASON: Medibank Private Limited (MPL)

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Figure 1: Medibank Private Limited 12 month chart

 

Medibank Private Limited (MPL) First FY result since listing beat expectations

– Medibank Private reported better than expected profit for FY15 driven by a 5.1% pick-up in Health Insurance premium revenue. Medibank did not list any impairment and restructuring expenses over the year compared to the $134.7Million claimed last year, which supported its net profit result.

– Operating profit in MPL’s Health Insurance business which contributes to 96% of its total profit was helped by two sets of premium increases over the last 18 months (premium rate rises of 6.50% from 1 April 2014 and another 6.59% increase from 1 April 2015). While total claim costs over the last year only increased by 4.3% to $5.1Billion.

– The lift in revenue from health insurance more than offset the 11.3% slide in MPL’s complementary services division. This business provides health management services for government and corporate customers, as well as travel, life and pet insurance products. The decline was mainly due to the non-renewal of the government’s immigration contract which expired in July 2014.

– Medibank surprised the market by announcing an inaugural fully franked dividend of $0.053 a share payable on 28 September 2015 to shareholders.

 

You can see all of CommSec’s reporting season analysis by clicking here.

Juliana Roadley, Market Analyst,