Page 131 - RusRPTFeb22

The European Medical Centre (EMC) has released a strong 4Q21 trading update. Revenues surged 28% YoY to EUR 83mn (in line with our forecast). The prime support came from the ramp-up of MHI services in oncology treatments (they contributed some 20% of the total in 2021), while the commercial business saw flattish traffic and EUR ticket dynamics for the quarter. For 4Q21F, we see MDMG’s revenues up 10% YoY on the much higher comparison base (up 49% YoY in 4Q20), as it is more actively involved in COVID treatments. In 2021, EMC’s revenues were up 20% YoY to EUR 289mn and 26% YoY to RUB 25bn. The latter is in line with our 2021F forecast for MDMG’s turnover, highlighting that both are sector leaders. EMC trades on 2022F EV/EBITDA of 8.5x, a 57% premium to MDMG, on our estimates, that looks overly demanding, in our view.
131 RUSSIA Country Report February 2022 www.intellinews.com