eQ Oyj - Half Year financial report

eQ PLC’S HALF YEAR FINANCIAL REPORT 2017 – eQ GROUP'S OPERATING PROFIT GREW BY 8%

eQ PLC HALF YEAR FINANCIAL REPORT

9 August 2017 at 8:00 a.m.

  

 

January to June 2017 in brief

 

• During the period under review, the Group's net revenue totalled EUR 18.8 million (EUR 18.4 million from 1 Jan. to 30 June 2016).

• The Group’s net fee and commission income was EUR 18.3 million (EUR 17.7 million).
• The Group’s net investment income from own investment operations was EUR 0.5 million (EUR 0.6 million).

• The Group’s operating profit grew by 8 per cent to EUR 8.7 million (EUR 8.1 million).
• The Group’s profit was EUR 6.9 million (EUR 6.4 million).
• The consolidated earnings per share were EUR 0.19 (EUR 0.17).
• The net cash flow from own investment operations was EUR 0.1 million (EUR 0.7) and the change in fair value was EUR 1.0 million (EUR -0.4 million).
• The net revenue of the Asset Management segment increased by 32 per cent to EUR 16.0 million (EUR 12.1 million) and the operating profit by 54 per cent to EUR 8.2 million (EUR 5.3 million).
• The net revenue of the Corporate Finance segment fell to EUR 2.3 million (EUR 5.8 million). It is typical of corporate finance business that success fees have a considerable impact on invoicing, due to which the result may vary considerably from quarter to quarter.

 

April to June 2017 in brief

 

• In the second quarter, the Group’s net revenue totalled EUR 9.4 million (EUR 9.0 million from 1 April to 30 June 2016).

• The Group’s net fee and commission income was EUR 9.1 million (EUR 8.7 million).
• The Group’s net investment income from own investment operations was EUR 0.3 million (EUR 0.3 million).

• The Group’s operating profit grew by 12 per cent to EUR 4.4 million (EUR 4.0 million).
• The Group’s profit was EUR 3.5 million (EUR 3.1 million).
• The consolidated earnings per share were EUR 0.09 (EUR 0.09).

 

 

Key ratios	1-6/17	1-6/16	Change %	4-6/17	4-6/16	Change %	1-12/16
Net revenue, Group, M€	18.8	18.4	2%	9.4	9.0	5%	35.4
Net revenue, Asset Management, M€	16.0	12.1	32%	8,0	6.0	35%	25.6
Net revenue, Corporate Finance, M€	2.3	5.8	-59%	1.1	2.8	-61%	7.9
Net revenue, Investments, M€	0.3	0.5	-38%	0.2	0.2	6%	1.9
Net revenue, Group administration
and eliminations, M€	0.1	0.0	1928%	0.1	0.0	2848%	0.0
Operating profit, Group, M€	8.7	8.1	8%	4.4	4.0	12%	16.2
Operating profit, Asset Management, M€	8.2	5.3	54%	4.2	2.7	57%	12.0
Operating profit, Corporate Finance, M€	0.8	3.0	-73%	0.4	1.5	-75%	3.7
Operating profit, Investments, M€	0.3	0.5	-38%	0.2	0.2	6%	1.9
Operating profit, Group administration, M€	-0.6	-0,8	-17%	-0.3	-0.4	-17%	-1.4
Profit for the period, M€	6.9	6,4	7%	3.5	3.1	12%	12.8

 

 

 

Key ratios	1-6/17	1-6/16	Change %	4-6/17	4-6/16	Change %	1-12/16
Earnings per share, €	0.19	0.17	6%	0,09	0.09	11%	0.35
Equity per share, €	1.45	1.58	-8%	1,45	1.58	-8%	1.74
Cost/income ratio, Group, %	53.6	54.9	-2%	52,8	55.9	-6%	53.0
Liquid assets, M€	5.3	7.5	-30%	5,3	7.5	-30%	16.7
Private equity fund investments, M€	20.5	22.0	-7%	20,5	22.0	-7%	19.2
Interest-bearing liabilities, M€	0.0	0.0	0%	0,0	0.0	0%	0.0
Assets under management, € billion	9.6	8.2	17%	9,6	8.2	17%	8.8

 

 

 

Janne Larma, CEO

 

The net revenue of the Group grew by 2 per to EUR 18.8 million and the operating profit by 8 per cent to EUR 8.7 million. The Group’s profit increased to EUR 6.9 million (EUR 6.4 million from 1 Jan. to 30 June 2016).

 

 

eQ Asset Management’s operating profit grew by 54 per cent

 

eQ Asset Management’s strong profit growth continued. eQ Asset Management’s rolling 12-month operating profit has already grown for 18 consecutive quarters, which is a tremendous achievement. The net revenue of the Asset Management segment increased by 32 per to EUR 16.0 million and the operating profit by 54 per cent to EUR 8.2 million. All business areas have driven growth: the management fees from traditional asset management grew by 18 per cent and the management fees from real estate and private equity asset management grew by 35 per cent. The strong interest of investors in real estate funds continued, and new subscriptions worth EUR 133 million were made in the funds during the six-month period. The interest in private equity asset management also continued to be solid. The final close of the eQ PE IX US Fund was made in June at more than USD 100 million. In June, we established a fund called eQ PE SF to manage a secondary market portfolio of EUR 135 million. Within traditional asset management, the returns of the funds managed by eQ are excellent. Since the beginning of the year, 71 per cent of our funds have surpassed their benchmark indices, and during an investment period of three years, all funds that eQ manages have surpassed their benchmark indices. We feel that our product portfolio is very well suited to the present market situation, and this combined with our good past returns will give us good operating preconditions in future as well.

 

 

Advium’s fee income at a lower level than last year

 

In the Corporate Finance segment Advium acted as advisor in six finalised transactions during the six-month period. Towards the end of the period under review, Advium also acted as advisor in two signed transactions that have not yet been finalised. Advium acted as advisor, e.g. in the largest real estate transaction in the Baltic countries in 2017 and issued a fairness opinion to the Board of Ilmarinen on the joining of the two occupational pension insurance companies Ilmarinen and Etera. Advium’s fee income was at a lower level than last year. The company’s net revenue fell to EUR 2.3 million (EUR 5.8 million from 1 Jan. to 30 June 2016) and its operating profit fell to EUR 0.8 million (EUR 3.0 million). Great variations in fees per quarter are typical of corporate finance operations. The market situation for corporate and real estate transactions continues to be good, and we believe that it will remain good in the second half of the year as well.

 

 

The result of the Investments segment fell slightly from last year

 

The operating profit of the Investments segment fell slightly from last year to EUR 0.3 million (EUR 0.5 million). At the end of June, the balance sheet value of the private equity fund investments was EUR 20.5 million (EUR 19.2 million on 31 December 2016). The values of the investments developed favourably, and the value change in the fair value reserve before taxes was EUR 1.0 million during the six-month period.

 

***

 

eQ’s half year financial report 1 January to 30 June 2017 is enclosed to this release and it is also available on the company website at www.eQ.fi.

 

 

Additional information: Janne Larma, CEO, tel. +358 9 6817 8920

 

Distribution: Nasdaq Helsinki, www. eQ.fi., media

 

 

eQ Group is a group of companies that concentrates on asset management and corporate finance business. eQ Asset Management offers a wide range of asset management services (including private equity funds and real estate asset management) for institutions and private individuals. The assets managed by the Group total approximately EUR 9.6 billion. Advium Corporate Finance, which is part of the Group, offers services related to mergers and acquisitions, real estate transactions and equity capital markets.

 

More information about the Group is available on our website www.eQ.fi.

Attachments:

eQ Plc Half Year Financial Report 2017.pdf