Medibank Earnings: Pleasing Return to Policyholder Growth As Cyber Disruptions Fade

Medibank’s fiscal 2023 profit increased 30% to AUD 511 million, broadly in line with our forecasts when adjusting for one-off cybercrime costs. The core private health insurance business modestly bettered our forecasts, but was offset by reduced income from Medibank’s other investments. Reduced telehealth income in the wake of the pandemic and costs in establishing new short-stay hospitals were a drag, but this has no implication for our positive long-term view as these startup costs are expected to bear fruit over the forecast period.