Pro Medicus Limited (ASX:PME) Reports 42.7% Profit Increase
Financial Performance
Pro Medicus Limited reported a half-year after-tax profit of $51.74 million, marking a 42.7% increase compared to the same period last year. Revenue from contracts with customers rose by 31.1% to $97.20 million. Underlying profit before tax also saw a significant rise of 42.9% to $69.92 million. The company’s cash reserves increased by $24.48 million, reaching $182.33 million, while maintaining a debt-free status.
Operational Achievements
The company’s North American revenue grew by 34.6%, driven by major implementations at Oregon Health & Science University, Baylor, Scott and White, and Moffitt Cancer Centre. Pro Medicus secured key contracts with Lurie Children’s Hospital, Trinity Health, and Duly Health and Care, totaling A$365 million over 7 to 10 years. Additionally, contract extensions with Visage 7 Open Archive at NYU Langone and Duke Health, as well as a renewal with Mercy Health, contributed to revenue growth. European revenue remained steady with a 0.8% increase, while Australian revenue rose by 10.8%, bolstered by a five-year contract extension with a major Australian Radiology Network.
Future Outlook
Pro Medicus is focused on expanding its presence in North America, Germany, and Australia. The company is actively pursuing opportunities in academic and teaching hospitals, integrated delivery networks, and corporate/private imaging centers. Continued investment in research and development underscores its commitment to innovation and long-term growth.
Dividend Declaration
Pro Medicus Limited has announced a fully franked interim dividend of 25.0 cents per share, payable on 21 March 2025, in line with its dividend policy.
Motley Fool contributor Matt Burgess has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has recommended Pro Medicus. The Motley Fool Australia has recommended Pro Medicus. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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