2016-08-03 07:00:01 CEST
2016-08-03 07:00:01 CEST
REGULATED INFORMATION
eQ Oyj - Half Year financial report
eQ PLC’S HALF YEAR FINANCIAL REPORT 2016 – eQ GROUP'S SUCCESS CONTINUES, OPERATING PROFIT GREW BY 29%
eQ PLC STOCK EXCHANGE RELEASE
3 August 2016 at 8:00 a.m.
January to June 2016 in brief
-- During the period under review, the Group's net revenue grew by 22 per cent
to EUR 18.4 million (EUR 15.0 million from 1 Jan. to 30 June 2015).
-- The Group’s net fee and commission income increased to EUR 17.7 million
(EUR 14.1 million).
-- The Group’s net investment income from own investment operations was EUR
0.6 million (EUR 0.9 million).
-- The Group’s operating profit grew by 29 per cent to EUR 8.1 million (EUR
6.3 million).
-- The Group’s profit was EUR 6.4 million (EUR 5.0 million).
-- Consolidated earnings per share grew by 28 per cent to EUR 0.17 (EUR 0.14).
-- The net cash flow from own investment operations was EUR 0.7 million (EUR
4.7 million from 1 Jan. to 30 June 2015) and the change in fair value was
EUR -0.4 million (EUR 1.1 million).
April to June 2016 in brief
-- In the second quarter, the Group’s net revenue grew by 6 per cent to EUR
9.0 million (EUR 8.5 million from 1 Jan. to 30 June 2015).
-- The Group’s net fee and commission income increased to EUR 8.7 million (EUR
7.9 million).
-- The Group’s net investment income from own investment operations was EUR
0.3 million (EUR 0.6 million).
-- The Group’s operating profit grew by 5 per cent to EUR 4.0 million (EUR 3.8
million).
-- The Group’s profit was EUR 3.1 million (EUR 3.0 million).
-- Consolidated earnings per share grew by 5 per cent to EUR 0.09 (EUR 0.08).
Key ratios 1-6/16 1-6/15 Change 4-6/16 4-6/15 Change 1-12/1
% % 5
--------------------------------------------------------------------------------
Net revenue, Group, M€ 18.4 15.0 22% 9.0 8.5 6% 30.5
------------------------- -------
Net revenue, Asset 12.1 11.2 8% 6.0 5.8 3% 21.7
Management, M€
------------------------- -------
Net revenue, Corporate 5.8 3.1 87% 2.8 2.2 28% 7.0
Finance, M€
------------------------- -------
Net revenue, 0.5 0.8 -38% 0.2 0.5 -64% 1.8
Investments, M€
------------------------- -------
Net revenue, Group
admin.
------------------------- -------
and eliminations, M€ 0.0 0.0 0% 0.0 0.0 0% 0.0
------------------------- -------
------------------------- -------
Operating profit, Group, 8.1 6.3 29% 4.0 3.8 5% 13.2
M€
------------------------- -------
Operating profit, Asset 5.3 4.9 8% 2.7 2.6 4% 9.6
Management, M€
------------------------- -------
Operating profit, 3.0 1.4 111% 1.5 1.1 29% 3.4
Corporate Finance, M€
------------------------- -------
Operating profit, 0.5 0.8 -38% 0.2 0.5 -64% 1.8
Investments, M€
------------------------- -------
Operating profit, Group -0.8 -0.9 -14% -0.4 -0.4 -21% -1.6
admin., M€
------------------------- -------
------------------------- -------
Profit for the period, 6.4 5.0 28% 3.1 3.0 5% 10.5
M€
--------------------------------------------------------------------------------
Key ratios 1-6/16 1-6/15 Change 4-6/16 4-6/15 Change 1-12/1
% % 5
--------------------------------------------------------------------------------
Earnings per share, € 0.17 0.14 28% 0.09 0.08 5% 0.29
------------------------- -------
Equity per share, € 1.58 1.77 -11% 1.58 1.77 -11% 1.91
------------------------- -------
Cost/income ratio, 54.9 56.7 -3% 54.9 54.4 1% 55.1
Group, %
------------------------- -------
------------------------- -------
Liquid assets, M€ 7.5 13.7 -45% 7.5 13.7 -45% 21.6
------------------------- -------
Private equity 22.0 24.6 -11% 22.0 24.6 -11% 22.5
investments, M€
------------------------- -------
Interest-bearing 0.0 0.0 0% 0.0 0.0 0% 0.0
liabilities, M€
------------------------- -------
------------------------- -------
Assets under management, 8.2 7.8 5% 8.2 7.8 5% 7.6
€ billion
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Janne Larma, CEO
eQ’s success continued in the second quarter. In the first half of the year,
the net revenue of the Group grew by 22 per cent to EUR 18.4 million and the
operating profit by 29 per cent to EUR 8.1 million. The first half of the year
has been challenging for equity investors, as the market has been very
volatile. At the beginning of the year, share prices plummeted, but recovered
later in spring. In May and June, prices fluctuated again greatly in both
directions due to the Brexit referendum. Due to the market situation, the
returns for the first six months were round zero. The best returns came from
emerging market equities (4.1% MSCI) and the poorest from European equities
(-7.2% MSCI). Bonds gave an excellent return, and the return of the 10-year
German Government bond already fell below zero and was -0.13% at the end of
June.
eQ Asset Management succeeded excellently in a difficult market situation
The excellent development of eQ Asset Management’s business continued in the
second quarter. In the first six months, the net revenue of the Asset
Management segment increased by 8 per to EUR 12.1 million and the operating
profit by 8 per cent to EUR 5.3 million. The increase of the net revenue was
based on the growth of real estate and private equity asset management. The
sales of the real estate funds continued to be very strong during the first six
months, and new subscriptions worth EUR 138 million were made in our two real
estate funds. Our private equity asset management was also very successful
during the first half of the year. We raised a record amount of capital, EUR
160 million, to our latest private equity fund eQ PE VIII North, which makes
investments in Northern Europe. In addition, we have obtained several new
mandate clients to our private equity asset management. One of the major deals
was a private equity mandate of almost EUR 80 million, where the investors are
the Federation of Finnish Technology Industries, Technology Industries of
Finland Centennial Foundation and nine other technical and technology sector
foundations and associations. Within traditional asset management, the assets
under management decrease from the year before due to market development, and
the fee and commission income was lower than in the comparison period 2015.
Advium’s profit more than doubled
Advium’s positive development continued in the second quarter. Advium acted,
for instance, as advisor to the Finnish Government, as it sold 49.9 per cent of
Patria to Norwegian Kongsberg, and to Viking Malt Oy as it bought three malting
plats of Carlsberg Group. In addition, Advium acted as advisor to the
LocalTapiola Group as it sold a 21,000 m2 residential block to Nordea Life
Assurance Finland. During the six-month period, Advium has acted as advisor in
nine finalised transactions. As a result of these transactions, the net revenue
of Advium almost doubled to EUR 5.8 million and the operating profit grew to
EUR 3.0 million (EUR 1,4 million from 1 Jan. to 30 June 2015).
The result of the Investments segment lower than last year
The net revenue and operating profit of the Investments segment were lower than
last year, both EUR 0.5 million (EUR 0.8 million from 1 Jan. to 30 June 2015).
The net cash flow from investments was also lower than last year, EUR 0.7
million (EUR 4.7 million). During the period under review, there occurred less
exits from the private equity funds and more capital calls than during the
comparison period.
With confidence into the second half
The third quarter has started off with a positive trend in the equity market,
and this combined with the strong sales of the real estate and private equity
asset management during the first half lays a good foundation for eQ Asset
Management's operations. Advium’s commission income was exceptionally high in
the first half, as several success fees were allocated to this period. Advium's
mandate base is still at a good level, but the number of finalised transactions
is expected to be lower than in the first half.
***
eQ’s half year financial report 1 January to 30 June 2016 is enclosed to this
release and it will also be 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 Finnish group of companies specialising in 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 individuals. The assets managed by the Group
total approximately EUR 8.2 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 at www.eQ.fi.
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