Medibank Private announced its net profit rose 1.9% in the half-year ending December 31st. The profit of $231.9 million compared to the $227.6 million earned in the year-ago period.
Directors reported an interim dividend of 5.25 cents per share out of earnings per share of 8.4 cents.
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However, Medibank shares are down over 3.5% today as the company announced operating profits fell 6.4% to $250 million.
Higher claims by members and amortization on a new information technology system pushed health insurance operating profits down 8.2% to $249.4 million.
Initial chart support for the stock will be found in the $2.60 area, which will place MPL on a 4% forward yield. We own the stock in client portfolio’s and we’ve sold covered calls to enhance the yield.
