Healthcare group Netcare has reported a 12% increase in first-half profit as demand for private healthcare services remained resilient.Group revenue grew by 4.8% to R13.3bn for the six months ended March. It said sustained focus on operational efficiencies, alongside the continued realisation of the digital dividend, underpinned solid operating leverage of 1.5 times and contributed to a 7.4% growth in operating profit to R1.78bn. Profit for the period increased by 11.9% to R924m and adjusted headline earnings per share increased by 21.9% to 71.7c. An interim dividend of 44c per share was declared, up 22.2% on a year ago.The group said the strong performance came against the backdrop of a competitive operating environment and a fluid medical schemes landscape. “Performance was underpinned by resilient demand for private healthcare services together with the ongoing benefits of the group’s digitisation strategy, which continues to deliver a meaningful digital dividend, and the continued execution of the group’s share buyback programme.” it said.Total paid patient days (PPD) increased by 0.7%, comprising a 0.4% increase in acute PPD and a 3.4% increase in mental health PPD. In line with Netcare’s capital allocation strategy of returning excess cash to shareholders, the group continued with its share buyback programme. A total of 21.6-million shares were acquired in the market between October 1 2025 and the end of March at an average price of 1,618c per share. A further 11.1-million ordinary shares have been purchased since the end of March. For the financial year up to May 11, R542m has been spent on share repurchases.“We are encouraged by the gradual improvement in certain South African macroeconomic indicators, and the confirmation medical tax credits will continue to increase broadly in line with inflation, which will provide ongoing relief to medical scheme members,” the group said.However, from January some medical schemes proactively amended benefit structures and plan designs in the interest of sustainability, which introduced some in-year variability in volumes within the acute hospital segment, it added. It said underlying demand for private healthcare remains resilient, supported by structural drivers such as an ageing insured population and the rising burden of disease. “Netcare’s ecosystem and extensive national footprint, supported by our digital, data and AI strategy, ensures the group remains well positioned to deliver quality patient care and continued improvements in operational and financial performance in FY2026 and beyond,” it said.For the full year, Netcare has revised its guidance and expects revenue growth between 4.0% and 4.8%, while acute PPDs are expected to grow by between 0.3% and 0.8%. Total PPD are expected to grow between 1.1% and 1.6%. It will continue to focus on strategic innovation, streamlining processes to reduce costs and investing in technology that enhances patient care and service delivery.Increased activity levels and continued operational efficiencies are expected to contribute to further Ebitda margin expansion, increased earnings and enhanced returns on invested capital, it said.It plans to spend about R1.9bn, including R566m on expansionary capex, this year.