Medibank’s Share Price Slightly Drops

This morning Medibank Private Limited [ASX:MPL] shares slightly dropped by 0.48%.

They are now trading at $3.13 a share, whereas last month they were trading for less.

Medibank’s market cap is valued at $8.606 billion while they sit on an enterprise value of $6.27 billion.

Medibank was founded in 1976 and are based in Melbourne’s Docklands.

They provide private health insurance and solutions in Australia, and operate in two segments: Health insurance and Medibank Health.

Medibank’s objectives and recent activities

Medibank lowered its overall management costs to balance its profits.

They managed to gain $5 million from the result of a property sale. Due to this, Medibank was able to grow their profit by 6% respectfully.

Recently they have set themselves a number of milestone objectives, which are set to be achieved by 2019.

These challenges include maintain an operating margin above private health insurance peers, maintaining ROE (return on equity) above cost capital, and doubling Medibanks share segment from FY16.

Medibanks loss of market share will be tricky to overcome, but it has declined to an extent.

What’s new with Medibank?

Medibank has made significant changes with the business over the last 18 months, helping turnover a positive result.

They are focusing on making customers their priority as they have recently announced a new priority program.

Their half year results reported that CEO Craig Drummond stated:

To mark the launch of this program, we are also pleased to announce a $20 million one-off loyalty bonus to our Medibank customers in June this year, starting with our Priority customers. For example, this means customers who have been with us for more than 10 years and have hospital and extras cover.

Health insurance profit

Medibank has managed to increase the profit for its health insurance, going from $249.4 million to $277.3 million.

Health insurance revenue has also increased as Medibank displayed overall improvement.


Ryan Clarkson-Ledward,

For Markets & Money

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Ryan Clarkson-Ledward is a junior analyst for Markets & Money. Ryan has degrees in both communication and international business. His priority is bringing you the latest price updates on stocks through ASX updates, as well as supporting Sam Volkering with background research. As part of the team at Markets & Money his aim is to provide unbiased and relevant news for readers. Ryan’s work with Sam is designed to provide research that complements Sam’s analysis for small-cap and technology stocks. Together, their objective is to break through all the jargon and give you the hard facts to inform your investment decision-making. Ryan writes for:

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