UnitedHealth Group reported a $4.3 billion dollar profit in the second quarter, nearly $2.3 billion less than it posted in Q2 2020. Revenues of $71.3 billion were up 15% from the previous quarter, thanks to well-diversified growth at subsidiaries Optum and UnitedHealthcare, according to UHG.
- Revenue Stats: UnitedHealth Group saw a notable slip in second-quarter profits, but Optum flaunted an uptick in revenue, operating margins and scope of service. Revenues of $71.3 billion were a 15% increase from the previous quarter, which UHG attributed to well-diversified growth at subsidiaries Optum and UnitedHealthcare.
- Improvements: Revenues from Optum, meanwhile, improved 17.2% year over year to $38.3 billion, on the back of solid contributions from the sub-segments of OptumHealth (up 45.5%), OptumInsight (up 12.3%) and OptumRx (up 5.4%).
- Operation earnings: Earnings from operations hit $6 billion, while cash flows from operations reached $5.5 billion, about 1.3 times net income.Net earnings were $4.46 per share and adjusted earnings were $4.70 per share.
- Operation cost ratio: The operating cost ratio of 14.5% improved 160 bps year over year in the second quarter, due to repeal of the health insurance tax, the pandemic-induced effects on revenues and persistent productivity advances. That metric has been partly offset by business mix and various investments.
- Total cost: Total operating costs for the second quarter escalated 23.5% year over year to $65.3 billion due to increased medical and operating costs, higher cost of products sold, and rise in depreciation and amortization.