DGAP-News: RHÖN-KLINIKUM AG (english)

RHÖN-KLINIKUM AG: Results for the first half of 2008



RHÖN-KLINIKUM AG / Half Year Results/Interim Report



07.08.2008



Release of a Corporate News, transmitted by DGAP - a company of EquityStory AG.

The issuer / publisher is solely responsible for the content of this

announcement.

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?Confirmation of growth course: Revenues raised by 4.3% to EUR 1.05 billion

(first half of 2007: EUR 1.01 billion)

?Net consolidated profit: sharp rise by 17.7% to EUR 61.9 million (first half

of 2007: EUR 52.6 million)

?Group wants to take new approaches to cross-sector cooperation

?Forecast confirmed for full-year 2008: revenues of EUR 2.1 billion and net

consolidated profit of EUR 123 million



Note: The Company reports according to International Financial Reporting

Standards (IFRS) in their version applicable for 2008. For the first time,

an auditor's review of the Half-Year Financial Report was performed by the

statutory auditor.



Bad Neustadt a. d. Saale, 7 August 2008 ----- 'The further increase in key

performance ratios during the first six months of 2008 confirms our growth

course which we will continue also in the second half despite challenging

framework conditions', stated Wolfgang Pföhler, chairman of the Board of

Management of RHÖN-KLINIKUM AG. 'RHÖN-KLINIKUM AG stands on a solid

foundation. We combine good medicine with good business judgment and will

therefore be successful in the future as well.'



Compared with the first half of 2007, revenues rose during the first six

months of 2008 by EUR 43.2 million (+4.3%) to EUR 1,050.2 million (previous

year: EUR 1,007.0 million). The first-time consolidation of Kreiskrankenhaus

Köthen as at 1 April 2007 accounts for EUR 7.2 million of this rise in

revenues, and organic growth for the lion's share of EUR 36.0 million.



Compared with the first half of 2007, RHÖN-KLINIKUM AG achieved a rise

(+3.0%) in EBITDA by EUR 3.7 million to EUR 128.6 million (previous year: EUR

124.9 million) and an increase (+6.7%) in EBIT by EUR 5.4 million to EUR 86.2

million (previous year: EUR 80.8 million) as well as a rise in net

consolidated profit by EUR 9.3 million or 17.7% to EUR 61.9 million (previous

year: EUR 52.6 million), thus meeting the targets set by the Group's

Management. Net consolidated profit in the first half corresponds to

earnings per ordinary share of EUR 0.57 (previous year: EUR 0.48).



EUR 8.1 million of the EUR 9.3 million improvement in net consolidated profit

is accounted for by the first-time application of the lowered corporation

tax rate and the resulting lower earnings tax burden. Despite challenging

framework conditions and sharp rises in personnel and material costs,

RHÖN-KLINIKUM AG succeeded in once again raising operating consolidated

profit by broadening its offering and exercising strict cost management.

The remaining increase in earnings is EUR 1.2 million. Adjusted for one-off

valuation effects in 2007 of EUR 0.4 million, the increase in operating

earnings in the first half stood at EUR 1.6 million, which stemmed among

other things from the further improvement, to EUR 0.5 million, at

Universitätsklinikum Gießen und Marburg GmbH. After burdening the earnings

result last year by EUR 0.5 million, Krankenhaus Köthen GmbH, consolidated on

1 April 2007, contributed EUR 0.2 million to consolidated earnings in the

first half of 2008.



Driven by investments, the Company's assets increased by EUR 3.6 million

(+0.2%).



As at 30 June 2008, the Company reported equity capital of EUR 845.1 million

(as at 30 June 2007: EUR 751.9 million, 31 December 2007: EUR 810.8 million),

with distributions to shareholders and minority owners in the amount of EUR

32.3 million already included. The equity ratio saw a slight rise from

39.1% to 40.8%.



Overall, 100.4% of non-current assets is covered by equity and non-current

liabilities. Net debt to banks rose since the last reporting date from EUR

496.2 million to EUR 555.2 million as at 30 June 2008.



Internal financing strength was raised. Compared with the same period last

year, operating cash flow rose from EUR 96.8 million by 7.5% to reach EUR 104.1

million.



'The Group continues to enjoy stable and sound financial structures',

confirms Dietmar Pawlik, the Company's CFO.



Of the investments made in the Group during the first six months of 2008, EUR

22.0 million was attributable to investments funded from grants under the

Hospital Financing Act (KHG) (previous year: EUR 46.9 million) and deducted

from total investments pursuant to the relevant provisions of IFRS. For the

second half of financial year 2008, investments of roughly EUR 150 million

have been planned.



As at 30 June 2008 we consolidate 46 hospitals with 14,584 beds/places at a

total of 35 sites in nine federal states.



During the first six months a total of 833,375 patients (previous year:

782,718; a rise of 6.5% or 50,657 patients) were treated at our Group

hospitals and medical care centres (MVZs). After deducting consolidation

effects (Krankenhaus Köthen), this translates into organic growth of 44,756

patients or 5.7%. This growth is distributed nearly uniformly over the

entire Group.



At 30 June 2008, the Group employed 32,385 persons (31 December 2007:

32,222). The number of employees will further increase with the first-time

consolidation of St. Petri-Hospital in Warburg in the second half of 2008.



'With the takeover of St. Petri-Hospital in Warburg we will expand our

hospital network to 47 facilities', Wolfgang Pföhler said. By this

acquisition RHÖN-KLINIKUM AG confirms its goal of continuing to achieve

qualitative growth through the acquisition of hospitals at all levels of

care. St. Petri-Hospital, a standard care facility, has 153 beds and an

annual revenue volume of roughly EUR 15 million. 'The facility's first-time

consolidation is slated for the second half of 2008. We are well prepared

to take further hospitals into the Group.'



Besides the acquisition and restructuring of hospitals, the Company is

taking new approaches to outpatient-inpatient cooperation. In this regard

Wolfgang Pföhler adds that this ensures a stable cross-sector medical

platform for better patient care. 'We are seeking a partnership of equals

between community-based and hospital doctors, and offer community-based

doctors the opportunity to combine medical expertise with economic

commitment under their own responsibility through their stake in our

facilities. This cooperation holds considerable quality advantages for

patients and also leads to lower costs', states the chairman of the Board

of Management.



In conclusion, Wolfgang Pföhler confirmed the earnings forecast of

RHÖN-KLINIKUM AG: 'Based on the current framework conditions and on the

results of the first half of 2008, we confirm our revenue forecast for

full-year 2008 of EUR 2.1 billion and our earnings forecast of EUR 123 million.

We continue to pursue organic growth coupled with qualitative

acquisitions-driven growth in inpatient care as well as

outpatient-inpatient cooperation.'





RHÖN-KLINIKUM AG

Contact: Dr. Irmgard Stippler

Divisional Head of Corporate Communication

Schlossplatz 1

97616 Bad Neustadt/Saale

Tel.: 09771/65 1321

Fax: 09771/65 1306

E-mail: irmgard.stippler@rhoen-klinikum-ag.com

www.rhoen-klinikum-ag.com





07.08.2008 Financial News transmitted by DGAP



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Language: English

Issuer: RHÖN-KLINIKUM AG

Schlossplatz 1

97616 Bad Neustadt a.d.Saale

Deutschland

Phone: +49 (0)9771 - 65-0

Fax: +49 (0)9771 - 97 467

E-mail: fire.ir@rhoen-klinikum-ag.com

Internet: www.rhoen-klinikum-ag.com

ISIN: DE0007042301

WKN: 704230

Indices: MDAX

Listed: Regulierter Markt in Frankfurt (Prime Standard), München;

Freiverkehr in Berlin, Düsseldorf, Hamburg, Stuttgart



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