Medibank shares lower on first-half profit miss
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More news: Medibank shares fell in morning trade after the health insurer reported an 11% slide in first-half profit, missing market forecasts.
Shares were down 5.9% to $4.51 at 11:20am AEDT. The stock is up 14.2% over the last 12 months.
Medibank reports 11% fall in 1H profit as investment income slides
The news: Health insurer Medibank posted an 11% drop in first-half statutory profit to $302.9 million after net investment income slumped due to a reduction in the average RBA cash rate.
The numbers: Analysts were expecting a half-year profit of $309.7 million, according to Visible Alpha data.
Revenue was up 5.5% year on year to $4.50 billion, compared with consensus estimates of $4.48 billion.
The company will pay an interim dividend of 8.3 cents per share, up 6.4% from 7.8 cents a year ago.
The context: Medibank reiterated its resident health insurance outlook for FY26, aiming to grow policyholder market share, but anticipating “moderating” industry growth relative to FY25. It reaffirmed claims per policy unit growth of 2.6-2.9%.
It also reaffirmed non-resident health insurance earnings guidance of “solid gross profit growth” relative to FY25.
The source: ASX
