Q2 2024 Hapvida Participacoes e Investimentos SA Earnings Call Transcript
Key Points
- Hapvida Participacoes Investimento SA (BSP:HAPV3) reported a significant improvement in its cash Medical Loss Ratio (MLR), showing a 3.4-percentage-point reduction compared to the second quarter of 2023.
- The company achieved an EBITDA of BRL958 million in the second quarter, marking a nearly 60% increase from the same quarter last year.
- Hapvida's integration process has been successful, with all hospitals, emergency rooms, and diagnostic units now integrated, leading to improved customer service and reduced cancellation rates.
- The company has announced a build-to-suit financing structure for two new hospitals in Rio de Janeiro and Sao Paulo, which will free up capital for further investments in verticalization.
- Hapvida's net revenue grew by 4.5% in Q2 2024 compared to Q2 2023, driven by a 9% increase in the average ticket price for healthcare plans.
- Despite the revenue growth, Hapvida experienced a slight drop in the number of members, losing around 13,000 lives net in the quarter.
- The company faced a reduction of 27% in revenue from sales of medical services and other activities in the second quarter of 2024.
- Hapvida's cash admin expenses saw an increase due to contingencies for acquired companies and incremental contingencies for unfavorable outcomes.
- There was a significant increase in dengue fever cases in some regions, impacting the company's operations and costs.
- The company experienced an increase in judicial deposits and blocks, affecting its working capital for the quarter.
Hello, everyone, and thank you for waiting, welcome to Hapvida's second-quarter 2024 earnings conference call. Join us are Mr. Jorge Pinheiro, CEO; Luccas Augusto Adib CFO, and Guilherme Nahuz, IRO. (Operator Instructions) This event is being recorded and will be made available on the company's IR website with the complete earnings release materials, you can download the slide deck by clicking on the icon in the chat and please refer to the disclaimers at the end of the presentation.
(Operator Instructions) Now I would like to turn the floor over to Jorge Pinheiro, CEO, who will start the presentation. You have the floor, sir.
Hello, everyone, and thank you so much for joining us for our second-quarter 2024 earnings conference call. We're gathered here in Sao Paulo, Luccas, Guilherme, myself and the IR team, please, for CAE please share some details with you.
Let's get started on slide 2 of the presentation. Here you can see an overview
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