Cleopatra Hospitals Group (CHG) [CLHO.CA] reported 3Q18 results, with net income up 205% Y-o-Y to EGP86.2mn, mostly on higher revenues, margin gains and interest income. Revenue for the quarter came in at EGP388m, up 32% Y-o-Y, driven by inpatient revenue (+47% Y-o-Y, c25% of total where number of patients declined 2%, while revenue/patient grew 26%), emergency revenue (+34% Y-o-Y, c4%), surgeries (+32% Y-o-Y, c21%), outpatients (+31% Y-o-Y, c13%) and other segments (+24% Y-o-Y, c36%). The largest contributor to revenue was Cleopatra Hospital (c47%), followed by Cairo Specialised Hospital (19%), Nile Badrawi Hospital (17%) and Al Shorouk (16%). Gross profit came in at EGP142mn (+56% Y-o-Y), implying a 5.6pp Y-o-Y gross margin expansion to 36.6%, likely on an improving sales mix, along with cost-control initiatives (cross-asset integration/procurement programme; medical supplies 19.6% of sales vs. 23.1% in 3Q17). EBITDA rose 93% Y-o-Y to cEGP108mn, with the margin widening 8.7pp to 24.7%, as SG&A only grew by 6% Y-o-Y. The company recorded net interest income of EGP32mn in 3Q18 vs. net interest expense of cEGP6.94mn in 3Q17.