Pro Medicus logs 42.7% increase in net profit as major contracts drive growth
Health imaging company Pro Medicus (ASX: PME) has announced a net profit of $51.7 million for the six months to the end of December 2024, representing a 42.7% increase on the previous corresponding period.
Revenue from ordinary activities was up 31.1% to $97.2m, driven largely by increased sales from North America, where regional revenue rose 34.6% to $86.4m.
The company’s cash and other financial assets in December increased 17.7% to $182.3m and it remains debt-free.
Contract wins
Pro Medicus won key contracts with Trinity Health, Lurie Children’s Hospital and Duly Health and Care during the period, worth a combined minimum amount of $365m spread over individual deals spanning up to 10 years.
The Trinity Health contract alone is valued at $330m and represents the largest win in the company’s history.
Pro Medicus also renewed its contract with US-based Mercy Health, valued at $98m over eight years, as well as one for $32m over five years with a large Australian radiology practice.
Additional modules were added to existing contracts at Duke Health ($15m over five years) and NYU Langone ($24m over five years).
Record wins
Pro Medicus chief executive officer Dr Sam Hupert said the half-yearly results represented record wins across the board.
“This period represents another record result, with all our key financial indicators moving in the right direction,” he said.
“It was our biggest half in terms of upticks in revenue, net profit growth, retained earnings and new contract wins, renewals, and upgrades—setting us up well for the second half.”
Key implementations
The company achieved several key implementations including a contract with Baylor Scott & White, which it fully implemented in 11 months from the date of signing.
“We keep refining our implementation methodology, which we believe is the best in the business and we learn from each one we do,” Dr Hupert said.
“Once a client has made the decision to move to our platform, they usually want it implemented as soon as possible, which suits us, as the sooner the client is fully live, the sooner we get the full run rate of revenue going forward.”
Dr Hupert said the Pro Medicus contract pipeline remained strong across client classes as it continues to address all market segments and sizes.