ADN Telecom diversifies into healthcare amid growth prospects

Infographic: TBS

Eyeing promising prospects in the healthcare sector, ADN Telecom – an IT and telecommunication services provider – is set to diversify its portfolio by acquiring a 37% stake in Senior Citizen Healthcare Limited, which operates specialised hospitals for the elderly in the country. 

As part of the investment, the publicly listed company will inject around Tk10 crore, with a mandate to leverage its telecom expertise to enhance Senior Citizen Healthcare's existing services and expand its reach into rural areas.  

"Senior Citizen Healthcare is currently operating in Dhaka, but it has plans to expand its business. Seeing strong future prospects, we decided to invest in the company," Md Monir Hossain, company secretary of ADN Telecom, told The Business Standard. 

"As the industry continues to grow, we expect the market to expand further in the future. Our partnership aims to generate better returns."  

With this decision, ADN Telecom has ventured into the country's $3 billion digital healthcare market, said Monir, adding as the market continues to grow, the future prospects of healthcare are very promising.  

He said the telecommunications business in the country is becoming stagnant. Due to this, the company's management decided to diversify into the healthcare sector.  

"Beyond providing digital services, we also have plans to support the expansion of Senior Citizen Healthcare's operations," he added.  

Senior Citizen Healthcare began its journey in 2019 by establishing special hospitals designed for senior citizens of Bangladesh for the treatment of various diseases.  

Senior Citizens Hospital is the only specialty hospital in the country providing world-class treatments and evidence-based protocols across a broad range of medical specialties exclusively for elderly patients.  

It is introducing space-age technology, such as Robotic Rehabilitation, Biofeedback therapy, Virtual Reality (VR)-based treatment, and Artificial Intelligence (AI)-based health assessment and treatment protocols.  

Professor Dr Samnun F Taha, founder of Senior Citizens Hospital, told The Business Standard, "ADN is a technology-based company, and we feel that our healthcare is moving towards technology. Now, small instruments can diagnose many things in a moment."  

"Since we are a Dhaka-based organisation, if we get the support of technology that ADN has, then we can provide services in remote areas as well. This is a win-win situation for both groups. The AI-based, technology-based healthcare market will grow," he added.  

Dr Taha pointed out that they have a plan to start small out-door services outside Dhaka with the support of modern technology. In the country, people have to travel a long distance to get healthcare. "If we have proper technology and network, we can provide the service closer to the people, then the suffering and cost will be reduced," he added.  

He said they target providing treatment at low cost and there will be a call centre, hotline number. "We are working on how to provide treatment in addition to telemedicine and video calls. The elderly will be the priority, but this technology-based service is for everyone."  

"We will start this activity within the next three months," he added.  

More than 65% of patients in the country receive medical services from private hospitals or clinics.  

According to a Bangladesh Bureau of Statistics report, at present, the number of beds in private hospitals is almost double that of public hospitals, which indicates that more persons are seeking care from private hospitals than public hospitals.  

ADN Telecom, one of the major sister concerns of ADN Group, raised Tk57 crore from the stock market in 2019 to expand its business.  

Since 2019-20, its net revenue has grown consistently until the fiscal 2023-24, along with a similar growth pattern in net profit until 2022-23. One-third of its revenue came from exports through providing IT support and services.  

In FY24, the company reported a net profit of Tk14.43 crore, with a net profit margin of 10%, down from 19% in 2022-23.  

Regarding the decline in profit, ADN Telecom stated in its annual report that the reduction in net profit was primarily due to an increase in the cost of goods sold, driven by the ongoing expansion of its retail business segment.  

The higher costs associated with this growth phase also impacted earnings per share (EPS), which declined year-on-year, reflecting the effect of increased operational expenses during the expansion period, it reads in the report.