Flu outbreaks, Royal Commission costs bring Estia Health’s expected full year EBITDA down to $92-94 million

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The listed operator issues a trade update last week, warning the market that its FY19 results in August for mature homes are expected to be $86 to $88 million compared to $90 million in FY18.

While this is an increase of two to four per cent compared to FY18, it is lower than previously anticipated, which it puts down to several factors.

The occupancy rate for its nearly 6,000 beds was 93% as of 23 May, down 0.9% from last December – which it blames on “continuing adverse publicity in the sector” and the recent influenza outbreaks in SA, which totalled 53 as of last week.

Occupancy levels have also been affected by the closure of its Mona Vale facility in Sydney’s Northern Beaches, which it went ahead with in order to “accelerate the re-development of a well-positioned site” – losing it another $600,000.

This is despite Estia’s additional temporary funding increase from ACFI, which it expects to contribute $9.7 to $10.2 million to EBITDA in FY19.

Total costs from the Royal Commission for FY19 are also estimated to be around $3.2 million.