Earnings Review / MLP Care (MPARK TI) - Bottom line below expectations: Maintain Buy
MLP Care posted a TRY132m net loss in 3Q18, worse than our estimated TRY52m loss. The lower-than-expected performance was mainly due to medical tourism revenues failing to deliver a meaningful FX injection into the company (despite increasing 52% q-q). This led to MLP Care taking the brunt of the TRY175m FX loss resulting from the company’s EUR denominated debt. Operational performance also undershot our estimates slightly as EBITDA came in at TRY95m vs our TRY106m estimate. Revenue came in at TRY782m, in line with our TRY784m expectation.
Despite lower than expected operational performance for the quarter and the decrease in our valuation resulting from the cancelation of the two hospitals, we still believe MLP Care possesses sufficient upside potential to warrant a BUY recommendation, assuming TRY does not depreciate further.
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