eQ PLC INTERIM REPORT
eQ PLC’S INTERIM REPORT Q3 2020 – eQ GROUP'S RESULT DEVELOPMENT CONTINUED TO BE STRONG
January to
- During the period under review, the Group's net revenue totalled
EUR 36.6 million (EUR 35.0 million from 1 Jan. to30 Sept. 2019 ). - The Group’s net fee and commission income was
EUR 37.3 million (EUR 34.5 million ). - The Group’s net investment income from own investment operations was
EUR -0.6 million (EUR 0.5 million ), including the return from private equity and real estate fund investments and liquid fixed income funds. - The Group’s operating profit grew by 8% to
EUR 19.2 million (EUR 17.9 million ). - The Group’s profit was
EUR 15.4 million (EUR 14.3 million ). - The consolidated earnings per share were
EUR 0.40 (EUR 0.38 ). - The net cash flow from the Group’s own private equity and real estate fund investment operations was
EUR -0.2 million (EUR 0.8 million ). - The net revenue of the Asset Management segment increased by 9% to
EUR 34.6 million (EUR 31.8 million ) and the operating profit by 14% toEUR 20.8 million (EUR 18.2 million ). - The net revenue of the Corporate Finance segment was
EUR 2.7 million (EUR 2.9 million ) and the operating profit wasEUR 0.7 million (EUR 0.8 million ).
July to
- In the third quarter, the Group’s net revenue totalled
EUR 12.7 million (EUR 12.1 million from 1 July to30 Sept. 2019 ). - The Group’s net fee and commission income was
EUR 12.9 million (EUR 12.0 million ). - The Group’s net investment income from own investment operations was
EUR -0.2 million (EUR 0.1 million ), including the return from private equity and real estate fund investments and liquid fixed income funds. - The Group’s operating profit was
EUR 7.5 million (EUR 6.9 million ). - The Group’s profit was
EUR 6.0 million (EUR 5.5 million ). - The consolidated earnings per share were
EUR 0.16 (EUR 0.15 ).
Key ratios | 1-9/20 | 1-9/19 | Change | 7-9/20 | 7-9/19 | Change | 1-12/19 |
Net revenue, Group, M€ | 36.6 | 35.0 | 5% | 12.7 | 12.1 | 5% | 50.6 |
Net revenue, Asset Management, M€ | 34.6 | 31.8 | 9% | 11.9 | 10.9 | 9% | 44.3 |
Net revenue, Corporate Finance, M€ | 2.7 | 2.9 | -5% | 1.0 | 1.1 | -7% | 5.4 |
Net revenue, Investments, M€ | -0.7 | 0.2 | -406% | -0.3 | 0.1 | -527% | 0.8 |
Net revenue, Group administration and | |||||||
eliminations, M€ | -0.1 | 0.1 | 0.1 | 0.0 | 0.1 | ||
Operating profit, Group, M€ | 19.2 | 17.9 | 8% | 7.5 | 6.9 | 9% | 26.3 |
Operating profit, Asset Management, M€ | 20.8 | 18.2 | 14% | 7.8 | 6.8 | 14% | 25.4 |
Operating profit, Corporate Finance, M€ | 0.7 | 0.8 | -8% | 0.4 | 0.4 | -10% | 1.9 |
Operating profit, Investments, M€ | -0.7 | 0.2 | -406% | -0.3 | 0.1 | -527% | 0.8 |
Operating profit, Group administration, M€ | -1.6 | -1.3 | -0.3 | -0.4 | -1.8 | ||
Profit for the period, M€ | 15.4 | 14.3 | 8% | 6.0 | 5.5 | 9% | 21.0 |
Key ratios | 1-9/20 | 1-9/19 | Change | 7-9/20 | 7-9/19 | Change | 1-12/19 |
Earnings per share, € | 0.40 | 0.38 | 7% | 0.16 | 0.15 | 8% | 0.55 |
Equity per share, € | 1.50 | 1.52 | -1% | 1.50 | 1.52 | -1% | 1.70 |
Cost/income ratio, Group, % | 47.3 | 48.9 | -3% | 40.9 | 42.9 | -5% | 48.1 |
Liquid assets, M€ | 23.0 | 18.8 | 22% | 23.0 | 18.8 | 22% | 32.3 |
Private equity and real estate fund investments, M€ | 15.8 | 16.4 | -4% | 15.8 | 16.4 | -4% | 16.2 |
Interest-bearing loans, M€ | 0.0 | 0.0 | 0% | 0.0 | 0.0 | 0% | 0.0 |
Assets under management excluding reporting services, € billion | 7.2 | 6.3 | 14% | 7.2 | 6.3 | 14% | 6.8 |
Assets under management total, € billion | 8.7 | 11.2 | -23% | 8.7 | 11.2 | -23% | 11.7 |
The Group’s result development continued to be strong despite the challenging market environment. eQ Group’s operating profit has grown for 26 consecutive quarters. During the first nine months of the year, the net revenue of the Group grew by 5% to
The growth of eQ Asset Management’s management fees and operating profit continued
Growth of eQ Asset Management’s fee and commission income has still been driven by real estate and private equity asset management, the fee and commission income of which grew by 20% on the previous year. Within eQ’s real estate asset management, subscriptions started to grow in the second half. Subscriptions were made for more than
eQ Asset Management’s excellent profit growth continued. The net revenue of the Asset Management segment increased by 9% to
Advium’s result at previous year’s level
In the Corporate Finance segment, Advium has acted as advisor in six finalised transactions during the nine-month period. In the third quarter, Advium acted as advisor to Cargotec, for instance, as the Boards of Cargotec and Konecranes will propose to the shareholders a merger that will result in a global leader of sustainable material flows.
During the nine-month period, Advium’s income and profit were at the previous year’s level. Advium’s net revenue during the period under review was
Advium’s order stock continues to be good, but the challenging operating environment still slows down project completion. The market situation has improved since the second quarter, however, but it has not yet returned to the activity level of 2019. Great variations in fee income per quarter are typical of corporate finance operations.
The result of the Investments segment lower than last year
The operating profit of the Investments segment fell from last year. The operating profit of the segment was
Outlook
The outlook for the financial year is still unaltered, and we expect the net revenue and operating profit of the Asset Management segment to grow from the previous year. After the period under review, the eQ
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eQ’s interim report 1 January to
Additional information:
Distribution: Nasdaq Helsinki, www.eQ.fi,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
More information about the Group is available on our website www.eQ.fi.
Attachment
- eQ Plc Interim Report Q3 2020
© OMX, source