Shares of in-vitro fertilisation (IVF) provider Virtus Health Ltd (ASX: VRT) have fallen marginally today after the group reported its interim earnings results to the market.
For the six-month period ended 31 December 2015, Virtus reported a 15.4% increase in revenue to $132.2 million, while reported earnings before interest, tax, depreciation and amortisation (EBITDA) rose by 10.3% to $36.2 million – representing an EBITDA margin of 27.4%. Meanwhile, EBIT was 8.1% higher at $30.6 million and net profit rose 7% to $17.9 million.
It was a decent result for the company, especially considering it experienced a drop in market share from 45.7% in the prior year to 44.6% as at the end of the period. Still, it said market cycle volumes in New South Wales, Queensland, Tasmania and Victoria for Assisted Reproductive Services (ARS) had grown 10.2%, while cycle growth in Virtus' clinics was also 6.2% up on a comparable basis.
While Australian growth was strong, its international clinics also performed well (although Singapore does still remain a headwind for overall group results) and this is great for the company's long-term growth ambitions.
The diluted earnings per share (EPS) of 22.13 cents may have been a little lower than the market anticipated, although they were still 6.9% higher than the prior corresponding period, with the company declaring a fully franked dividend of 14 cents per share (up from 13 cents in the prior year).
The shares were trading 1.3% lower at $6.24 at the time of writing, and could be worth a closer look for long-term investors.
