SHL Announces Half-Year Results 2023 – Strategic Moves to Accelerate Growth
- Stable revenues maintained in H1 2023
- Growing utilization and distribution of SmartHeart® ECG platform in the US
- Consistent increase in adoption of Doctors' Virtual Visits service in Germany
- Adjusted EBITDA down due to increased investment and listing expenses
- Net loss increased compared to 1HY2022
SHL Telemedicine Ltd. (NASDAQ: SHLT; SIX Swiss Exchange: SHLTN) (“SHL” or the “Company”), a leading provider and developer of advanced personal telemedicine solutions, announced today its results for half-year 2023, emphasizing stable revenues and strategic growth initiatives.
In H1 2023, SHL maintained stable revenues while making significant strategic advancements across all operations. The Company made substantial investments in
H1 2023 Financial Highlights:
*All comparable previous periods figures are in constant currency1.
-
Total revenues rose to
USD 29.0m , a slight increase fromUSD 28.8m in 1HY2022. -
Revenues from the Company’s operation in
Israel increased by3% compared to 1HY2022, with revenues standing atUSD 21.6m . -
Revenues from the Company’s operation in
Germany amounted toUSD 6.8m , slightly down fromUSD 7.0m in 1HY2022 but up fromUSD 6.7m in 2HY2022. -
Adjusted EBITDA2 for the Company was
USD 0.4m , similar toUSD 0.6m in 2HY2022 and down fromUSD 3.1m in 1HY2022, mainly due to increased investment inGermany and in USA as well as Nasdaq® listing expenses. -
Cash on hand and short-term cash investments as of June 30, 2023, remain robust at
USD 29.4m . -
Net loss was
USD 2.1m , compared to a net loss ofUSD 0.1m in 1HY2022.
Strategic Developments and Upcoming Highlights:
- In the US, SHL has adjusted its strategy to prioritize direct-to-consumer sales of the SmartHeart® ECG, viewing it as a move of considerable strategic importance. The direct-to-consumer sales are anticipated to begin in the second half of 2023, and SHL will utilize its extensive network of US cardiologists for remote ECG evaluations. In parallel, the Company is optimistically awaiting the results from the HELP-MI clinical trial conducted by Mayo Clinic which they believe will hold significant value for its B2B plan of introducing the SmartHeart® platform to hospital systems.
- The Company continues to see growing utilization of its SmartHeart® platform by its Tier1 strategic customers including through the deployment of SmartHeart® in the CVS Minute Clinics.
- The Company is eagerly anticipating the outcomes of clinical trials led by Mayo Clinic and Imperial College London, both relating to the utilization of SmartHeart® 12-lead ECG technology for remote monitoring of post-MI (heart attack) patients at home, examining the reduction in the rate of visits to Emergency Department and hospital readmissions. Preliminary results showcased at the Imperial Vulnerable Plaque and Patient Meeting 2023 (VPM) indicate significant benefits, reinforcing SHL's position in the field.
-
In
Israel , SHL's B2C subscription activity is showing growth, and the Company has begun introducing new products and services this year, despite local political challenges, thus expanding the use of both its B2C and B2B infrastructures. -
The Company recently launched the Doctors’ Virtual Visit service in
Germany providing this offering to approximately 12.4 million individuals insured by BARMER and AOK Plus. The Company continues to witness a consistent increase in the adoption of the service and believes it will serve as promising new growth engine for its operation in the German market. - During April 2023, the Company’s ADR’s commenced trading on the Nasdaq®.
Erez Nachtomy, CEO of SHL, commented: “This half-year showcases our resilience and adaptability in the face of market challenges. Our consistent performance in
Conference Call at 4 pm CET
The Company will host a conference call for investors, journalists and analysts to discuss the Half-Year 2023 results today at 4 pm CET. The conference call will be hosted by Erez Nachtomy, CEO, and Amir Hai, CFO and will be held in English.
Dial-in numbers:
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The conference call is scheduled to last approximately 45 minutes.
The presentation is available on: www.shl-telemedicine.com/reports
The Half-Year Report 2023 is available on: www.shl-telemedicine.com/reports
SEC submission of the Half-Year Report and presentation is available on:
https://www.shl-telemedicine.com/sec-filing/
About SHL Telemedicine
SHL Telemedicine is engaged in developing and marketing personal telemedicine systems and the provision of medical call center services, with a focus on cardiovascular and related diseases, to end users and to the healthcare community. SHL Telemedicine offers its services and personal telemedicine devices to subscribers utilizing telephonic and Internet communication technology. SHL is listed on the SIX Swiss Exchange (SHLTN, ISIN: IL0010855885, Security No.: 1128957) and on the Nasdaq Stock Exchange (SHLT, ISIN: US78423T2006, CUSIP: 78423T200). For more information, please visit our web site at www.shl-telemedicine.com.
Financial calendar
7 December 2023, Annual General Meeting.
For more financial information:
For a comprehensive understanding of the Company’s financial reports and related management’s discussion and analysis for applicable periods, please visit the Company’s profile at https://www.sec.gov/edgar or the Company’s full report on its site: www.shl-telemedicine.com/reports
Key Figures for 1H2023
Key figures (as reported):
in USD million (except per share amounts) |
HY2023 |
HY2022 |
% change |
Revenues for the period |
29.0 |
30.9 |
(6) |
Revenues |
|
|
|
Revenues |
|||
- |
6.8 |
7.1 |
(4) |
- |
21.6 |
23.0 |
(6) |
- Rest of the World | 0.6 |
0.8 |
(25) |
EBIT |
(4.4) |
(1.0) |
|
EBITDA* |
(0.9) |
2.4 |
|
Net profit (loss) |
(2.1) |
0.1 |
|
EPS (Basic loss) |
(0.14) |
0.00 |
|
Operating cash flow |
(3.3) |
1.7 |
|
* EBITDA: operating profit excluding depreciation and amortization expenses of
Adjusted key figures (in constant currency):
In the table below, HY2022 results have been presented at HY2023 exchange rates. Management believes that this presentation enables a more meaningful comparison between the periods due to the significant fluctuations in NIS/USD/EUR exchange rates during the period.
In USD million |
HY2023 |
HY2022 |
% change |
Revenues |
29.0 |
28.8 |
1 |
Revenues |
|||
- |
6.8 |
7.0 |
(3) |
- |
21.6 |
21.0 |
3 |
- Rest of the World | 0.6 |
0.8 |
(25) |
Adjusted EBIT** |
(3.1) |
(0.1) |
|
Adjusted EBITDA *** |
0.4 |
3.1 |
|
**Adjusted EBIT: Please see the EBITDA, Adjusted EBITDA and Adjusted EBIT Table below.
***Adjusted EBITDA: Please see the EBITDA, Adjusted EBITDA and Adjusted EBIT Table below.
EBITDA, Adjusted EBITDA and Adjusted EBIT Tables (HY2022 results are presented in HY2023 exchange rates)
EBITDA: |
|
|
in USD Thousand |
HY2023 |
HY2022 |
Operating loss |
(4.4) |
(1.1) |
Plus: |
|
|
Depreciation and amortization expenses |
3.5 |
3.2 |
|
|
|
EBITDA |
(0.9) |
2.1 |
|
|
|
|
HY2023 |
HY2022 |
Operating loss – EBIT |
(4.4) |
(1.1) |
Plus: |
|
|
Cost of share-based payments |
0.8 |
0.9 |
Non-recurring expenses |
0.5 |
0.1 |
Adjusted EBIT |
(3.1) |
(0.1) |
|
HY2023 |
HY2022 |
EBITDA |
(0.9) |
2.1 |
Plus: |
|
|
Cost of share based payments |
0.8 |
0.9 |
Non-recurring expenses |
0.5 |
0.1 |
Adjusted EBITDA |
0.4 |
3.1 |
Reconciliation of Adjusted EBITDA and Adjusted EBIT to net profit as required by the rules of the
HY2023 |
HY2022 |
HY2022(CC) |
|
Net profit (loss) |
(2.1) |
0.1 |
(0.1) |
Financial income, net |
(3.0) |
(1.3) |
(1.2) |
Tax expenses |
0.7 |
0.2 |
0.2 |
Depreciation and amortization expenses |
3.5 |
3.4 |
3.2 |
EBITDA |
(0.9) |
2.4 |
2.1 |
Cost of share-based payment |
0.8 |
1.0 |
0.9 |
Non- recurring expenses |
0.5 |
0.1 |
0.1 |
Adjusted EBITDA |
0.4 |
3.5 |
3.1 |
The Company believes Adjusted EBITDA and Adjusted EBIT provide useful information regarding the Company’s financial and operating performance. Adjusted EBITDA and Adjusted EBIT are not
Forward Looking Statements:
This announcement contains “forward-looking statements” within the meaning of the
1Constant currency – to enable meaningful comparison between 1HY2023 and 2022 results, 2022 results are also presented at 1HY2023 exchange rates which are calculated as annual average based on the average monthly exchange rates of each of the USD and the EUR versus the NIS, as published by the Bank of
2 Please see the EBITDA, Adjusted EBITDA and Adjusted EBIT Table below, and Reconciliation Table of Adjusted EBITDA and Adjusted EBIT to net profit each presented below as required by the rules of the
View source version on businesswire.com: https://www.businesswire.com/news/home/20230921320711/en/
For further information please contact:
Fabienne Farner, IRF, Phone : +41 43 244 81 42, farner@irf-reputation.ch
Source: SHL Telemedicine Ltd.