RHC +6.82% had its best session in years after reporting better than expected revenue and earnings, while they announced a strategic review into its stake in Ramsay Santé
- 1H25 total revenue of $8.59 billion, a small beat to consensus with Australia +1% ahead and the UK +4% ahead
- Earnings (Ebitda) from continuing operations was $1.05 billion, up +0.8% y/y and slightly ahead of the $1.03 billion expected
- Net loss of $104.9m which was due to write downs.
- Interim dividend per share of $0.40, flat on last year.
The main news was that it had hired Goldmans to explore strategic options for its shareholding in Ramsay Santé, which could be a positive, while they said that Australian market fundamentals are supportive and provide foundation for growth.
- We should see ongoing positive re-rating here from RHC with more optimism about an earnings recovery (from a very low base), and the potential catalyst coming from their French business.
MM is now bullish RHC, a beaten-up turnaround opportunity
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