Primaya Hospital Group (PRAY) delivered a steady performance in the first quarter of 2025, navigating shifting patient dynamics and external pressures while maintaining confidence in its full-year targets.

PRAY reported 1Q25 revenue of IDR 539.9 billion, representing a 5% increase year-on-year, though slightly down by 3% compared to 4Q24 due to seasonal factors. EBITDA reached IDR 126.9 billion, relatively flat year-on-year but down 7% quarter-on-quarter, reflecting temporary margin pressure from evolving patient mix and lower inpatient utilization. EBITDA margin stood at 23.4%, down from 24.6% in the previous quarter and 24.9% in 1Q24.

The quarter saw a notable shift in patient mix, with outpatient revenue increasing by 28% YoY, while inpatient revenue declined by 5% YoY. This was driven largely by external regulatory and procedural changes that affected how certain cases were treated and classified. Correspondingly, inpatient days declined by 14% YoY, and bed occupancy fell to 43% from 56% last year, further impacted by the addition of over 250 new beds in the past year.

Despite these operational shifts, PRAY continues to advance its strategic agenda. The construction of Primaya Hospital Kelapa Gading is progressing well, though its opening is now expected in July 2025. Meanwhile, Primaya Hospital BSD remains on track for launch toward the end of the year. These facilities are expected to enhance long-term capacity and margin profile, supporting the company’s vision of delivering comprehensive, high-quality healthcare services.

From a regulatory and market standpoint, PRAY has responded proactively to industry changes. The shift in OP-IP mix partially reflects ongoing BPJS policy adjustments, including stricter referral and treatment classifications. The Group has prepared extensively for the KRIS implementation, with full compliance across all hospitals since the beginning of the year. Encouragingly, relationships with private insurance partners have shown positive momentum, improving over last year’s levels.

Looking forward, PRAY remains committed to its FY25 guidance, including revenue, EBITDA margin, and volume targets. However, in light of increasing macroeconomic uncertainty, the company is exercising financial prudence by lowering its FY25 capex projection from IDR 900 billion to IDR 750 billion, ensuring continued progress while maintaining a disciplined investment approach.