Pro Medicus achieves the most successful half-year in the Group’s history

About Pro Medicus Limited

Pro Medicus Limited (Pro Medicus, the Group, ASX: PME) is a ground-breaking radiology software business that provides medical imaging software and services to hospitals, imaging centres, and healthcare groups around the world. The Group’s acquisition of Visage Imaging in 2009 was a transformational event that has positioned Pro Medicus as a global provider of leading-edge medical imaging solutions. Today Visage Imaging is home to a suite of products that are the foundation of an ultra-fast, clinically rich, and highly scalable platform that can seamlessly be implemented in public and private cloud environments.

Pro Medicus was co-founded by its current CEO in 1983, Dr Sam Huper, who as a young medical school graduate recognised the benefits of applying computer technology to medicine. In the Group’s formative years, it assisted medical practices to do business more efficiently by maintaining computerised clinical records and managing patient billing and scheduling. Subsequently, the business expanded into providing patients with their radiology images and diagnostic results much faster.

Record revenue, profit, and new sales for December half-year

The December 2023 half-year has seen Pro Medicus deliver record results across the key financial metrics of revenue, profit, and new sales, driven by 37 percent higher revenue from North America where the Group has completed four new major contract implementations.

Group revenue from ordinary activities was 30 percent higher at $74 million and net profit after tax increased by 33 percent to $36.3 million. A fully franked interim dividend of 18 cents per share, up 38 percent, will be paid on 22 March.

Group cash and other financial assets at 31 December are sitting at $131.5 million, up 8.3 percent, and the Group remains debt-free.

The Future

The sales pipeline for Pro Medicus is strong across all sectors of a growing market in which the Group continues to build market share. Pro Medicus has recently won four significant contracts with a total contract value of A$200 million, based on minimum clinical examination volumes. Like many medical imaging contracts, these new contracts have terms from 7 to 10 years and are on top of the four new contracts implemented during the December half that will contribute a full six months of revenue in the second half of the June 2024 financial year. This has set the Group up for a record

2024 financial year and forms a solid foundation for future growth in FY2025 and beyond. A pleasing aspect of these contract wins is that an increasing number of clients choose to avail themselves of the full stack of all three Visage products – Viewer, Workflow and Archive, a trend which directors see continuing.

The Pro Medicus cloud-based modular approach provides unprecedented flexibility and scale that enables clients to readily apply the Group’s Visage Imaging platform and powerful software feature functions to other adjacencies like cardiology. This flexibility is a primary reason why Pro Medicus generates a sixty-six percent EBIT margin that should continue to expand as the Group’s footprint increases. The combination of market-leading technology and increasing market share in North America, being the world’s largest healthcare market, positions Pro Medicus for consistent annuity-style revenue and earnings growth over the long-term.