(Reuters) - Australian medical centre operator Healius Ltd reported a 6.3 percent fall in first-half profit on Friday, hurt by higher spending on employee benefits, and cut its full-year earnings outlook.
The company, formerly known as Primary Health Care Ltd, has been facing issues with retaining its general practitioners as government subsidies favour individual clinics over bigger private hospitals.
Profit attributable for the six months ended Dec. 31 slipped to A$20.7 million from A$22.1 million a year ago, due to a 7.2 percent rise in employee benefits expenses and softer growth in its pathology division, its largest business.
Healius, which recently rejected a takeover bid from a Chinese firm, lowered its FY 2019 guidance for underlying profit before tax to a range of A$93 million to A$98 million, from A$100 million or more previously.
Healius said in January a A$1.7 billion buyout approach from China's Jangho Group Co Ltd was "opportunistic and fundamentally undervalues Healius."
Jangho group has said that it intends to continue discussions with Healius. Chinese investors have shown in interest in Australia healthcare companies, seeing them as high-quality assets that could be of use in China, where an ageing population is straining existing services.
Healius said total revenue for the first half rose 4.7 percent to A$871.6 million, on continued growth across its divisions.
The company has also been investing in strategic initiatives, aimed at improving its sectors via a A$250 million capital raising.
Healius declared an interim dividend of 3.8 cents per share, down from 5.1 cents a year ago.
(Reporting by Nikhil Subba and Shreya Mariam Job in Bengaluru; Editing by Richard Pullin)
