SHL Telemedicine reports second quarter and half year 2011 results


Second Quarter highlights

  • Revenues of USD 11.6 million.
  • EBITDA of USD 2.7 million (23.3% of revenues).
  • EBIT of USD 1.5 million (12.9% of revenues).
  • Net income of USD 1.2 million (10.3% of revenues).
  • Dividend declared of USD 0.66 per share.
  • Additional share buy-back of USD 2 million approved.

Tel Aviv/Zurich, 24 August 2011 – SHL Telemedicine Ltd. (SIX Swiss Exchange: SHLTN), a
leading provider and developer  of advanced personal telemedicine  solutions,  today
announced results for the second quarter and half year 2011. 

Erez Alroy, Co-CEO of SHL Telemedicine, stated: “Revenues and profitability have developed
as expected during the first six months of 2011.  Our  Israeli business  showed improved
financial performance. In Germany, we continue to focus on major high value contracts with
large Krankenkassen (Health Insurers) although this environment continues to be challenging
due to  their continuing  aggressive consolidation. A highlight in the first six months was the
presentation and positive reception of SHL’s  innovative Smartheart cellular  technology at  the
TechCrunch event in the US.”

Germany
SHL  continues  concentrating on  negotiating  high value contracts with  the  large health
insurers. During the period SHL streamlined operations in Dusseldorf to accommodate for the
lower capacity currently needed. 

A  new  study, based on the services provided by SHL Telemedizin, was published by  the
Westdeutsche Zentrum für Diabetes (West German Center for Diabetes) affiliated to
Katholische Kliniken (catholic hospitals) in Dusseldorf. The objective of the Diabetiva® study
was to analyze the effects of six months telemedical care results of increased glucometabolic
control and quality of life in patients with type 2 diabetes mellitus (T2DM). 100 patients were
included in the study.  Participation in the telemedical care program showed a significant
improvement of HbA1c (glycated hemoglobin) as well as  cardiovascular risk factors, i.e.
weight, body-mass-index, fasting blood glucose and blood pressure.  In parallel, a significant
decrease of diabetes specific impairment and increase in quality of life was observed. Patients
with depression  especially,  benefited from  the telemedical care program  as the number  of
depressed patients decreased after three months from 64 to 35 and  then  to 29 at  the end of
the six months.

Israel

Israel continued  its good financial performance, showing improved operating margins. During
the period many new patients were recruited, based on agreements signed with Israeli health
insurers for the provision of telemedical services to their insured.

Smartheart: SHL’s latest innovation in the field of cardio telemedicine
SHL  was  selected to present  its  new telemedicine technology, the “Smartheart” at  the
TechCrunch Disrupt Battlefield Conference in New York  in May 2011.  Smartheart  is the
world’s  smallest Hospital-Grade ECG that can be used by a non-professional end-user,  is
slightly bigger than an iPhone 4 and weighs slightly less. The product generated much interest
at the Conference and SHL is currently examining several initiatives  related to the  launch of
his Smartheart platform.

Full Press Release