Pharma

Cyberattack impacts UnitedHealth profit in the second quarter

US health insurer UnitedHealth feels the effects of a cyberattack in the second quarter – security questioned.

Eulerpool News Jul 17, 2024, 7:25 PM

The U.S. health insurer UnitedHealth felt the impact of a major cyberattack in the second quarter. Profit fell by around a fifth to $4.2 billion (€3.9 billion), the company announced on Tuesday in Minnetonka. Despite these special charges, business ran surprisingly profitably, causing UnitedHealth shares to temporarily rise by 5.84 percent to $545.49 in NYSE trading.

The hacking attack on the corporate division UnitedHealthcare paralyzed important payment and data networks used throughout the US healthcare system in February. Most of the cleanup efforts have now been completed, it was said. For the remaining healthcare providers in distress, the company continues to offer financial support. UnitedHealth has transferred more than nine billion dollars in the form of advance payments and loans to the affected providers, according to their own statements.

Additionally, the US health insurer announced plans to sell the remainder of its business in South America. In the first quarter, the company had already divested its business in Brazil.

Despite the turbulence, the corporation was able to increase its revenue by a good six percent to $98.9 billion in the second quarter compared to the same period last year. The adjusted earnings per share exceeded industry experts' expectations at $6.80. For the full year, UnitedHealth continues to expect adjusted earnings per share of $27.50 to $28.

In this metric, however, UnitedHealth excludes the majority of the burdens from the hacker attack and the sale of the entire South American business. Including the special items, the earnings per share are expected to reach $15.95 to $16.40 this year, the company stated.

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