Abano’s reported revenue and EBITDA results exclude the returns from our joint venture audiology business, where we only equity account for our 50% share of the NPAT result in the financial period.
The revenue result also reflects the impact of a change in how we account for dental revenues in Australia. Previously, 100% of patient spend was recognised as revenue; however, following a change in the basis for contracting dentists, now we recognise ‘patient spend after dentists’ commissions’ as revenue.
To enable shareholders to review our revenue performance on a like for like basis with previous years, we have also reported gross revenues which includes the total equity accounted audiology revenues and 100% of Australian dental patient spend as revenue.
Due to this, reported revenues were relatively flat while gross revenues increased by 9% year on year. This was primarily due to an 18% increase in gross dental revenues, offset by the loss of approximately $10.5 million in revenue following the sale of the brain injury rehabilitation business at the beginning of the financial year.
EBITDA (excluding audiology) increased by 8%, predominantly driven by the expanding dental networks, where we are now starting to benefit from scale and improving margins, particularly in the purchase of materials and laboratory supplies.