KUALA LUMPUR (Feb 10): TMC Life Sciences Bhd (KL:TMCLIFE) sank into the red in the second quarter, dragged by termination and discount of customer contracts.
The healthcare provider posted a net loss for the second quarter ended Dec 31, 2024 (2QFY2025) of RM947,000 versus a net profit of RM14.52 million, as revenue fell 14.2% to RM80.43 million as compared to RM93.78 million, according to its bourse filing on Monday.
The group mainly attributed the loss to the “effects of termination and discounts of customer contracts”. This is the group's first quarterly loss in 18 quarters — since its RM4.3 million net loss in the three months ended May 31, 2020.
Back in Jan 24, TMC Life Sciences had warned shareholders of the anticipated losses for 2QFY2025, citing the effects of termination and discount of customer contracts.
The group was previously mired in a dispute with its former CEO Wan Nadiah Wan Abdullah Yaakob over alleged misconduct pertaining to terminated contracts with two insurers, as well as the entry into an agreement with T-Systems Malaysia Sdn Bhd.
Wan Nadiah was dismissed as group CEO in December last year after being found guilty by TMC Life Sciences in a domestic inquiry. She had stated her intention to appeal the dismissal.
The quarterly loss dragged earnings for the six months ended Dec 31, 2024 (6MFY2024) to RM1.99 million versus RM29.66 million a year earlier, on revenue of RM162.39 million as compared to RM186.22 million.
Looking ahead, TMC Life Sciences said the group is actively collaborating with insurers to “ensure positive contribution” to its performance.
“Additionally, the group is focusing on diversifying customer base including international market expansion and new corporate customers,” the group added.
On its hospital operations, the group said Thomson Hospital Kota Damansara’s expanded capacity as well as a rebound in the group’s fertility business are expected to drive growth.
Shares in TMC Life Sciences ended unchanged at 47 sen on Monday, valuing the healthcare provider at RM810.33 million.
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