Virtus Health expects revenue and profits for 2015 to be less than expected after Australia’s largest IVF provider missed its forecasts on new patients.
In February, Virtus issued guidance it would achieve profit growth in the low to mid teens before non-recurring items of $2.1 million.
Now Virtus expects to low to mid-single digit percentage growth in profit because of lower than forecast revenue.
The fertility clinic operator believes there is market growth in NSW but that this is being picked up by a bulk billing competitor.
On top of that, its Maroubra Clinic is out of action because of storm damage in April. New patient consulting activity is not expected to return to normal until the clinic reopens in August.
Virtus has also lost market share in Victoria and Queensland in the three months to April. And market growth has been weak in these states, with Victoria at +1% and Queensland -4%.
Patient volumes at the new Singapore Clinic has been slower than anticipated, resulting in a second half forecast loss of about $1 million.
In February the company posted a 12.9% rise in revenue for the first half to $114.5 million. Net profit was down 1.2% to $16.7 million.