OM Asset Management plc (OMAM) has reported 31.44 percent plunge in profit for the quarter ended Dec. 31, 2016. The company has earned $25.30 million, or $0.21 a share in the quarter, compared with $36.90 million, or $0.30 a share for the same period last year.
Revenue during the quarter grew 14.20 percent to $186.60 million from $163.40 million in the previous year period. Total expenses were 83.71 percent of quarterly revenues, up from 74.97 percent for the same period last year. That has resulted in a contraction of 874 basis points in operating margin to 16.29 percent.
Operating income for the quarter was $30.40 million, compared with $40.90 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $57.50 million compared with $51.50 million in the prior year period. At the same time, adjusted EBITDA margin contracted 70 basis points in the quarter to 30.81 percent from 31.52 percent in the last year period.
"OMAM had a strong finish to 2016 from both a financial and strategic perspective, as successful execution of our growth strategy drove improved results across our business," said Peter L. Bain, OMAM’s president and chief executive officer. "A return to fundamental valuation in the equity market environment during the fourth quarter favored active asset management, and our equity-oriented Affiliates produced outperformance for their clients across a range of strategies. Net client cash flows for the fourth quarter were also strong at $1.5 billion, and while net flows for the full year 2016 were 1.6 billion due largely to hard asset disposals and continued outflows in domestic large cap value products, gross flows into higher fee global, international equity and alternative products, including secondary strategies, resulted in annualized organic revenue growth of $14.6 million for the quarter and $11.0 million for the year.
Debt increases substantiallyOM Asset Management plc has witnessed an increase in total debt over the last one year. It stood at $392.30 million as on Dec. 31, 2016, up 335.89 percent or $302.30 million from $90 million on Dec. 31, 2015. Total debt was 30.31 percent of total assets as on Dec. 31, 2016, compared with 8.87 percent on Dec. 31, 2015. Debt to equity ratio was at 2.30 as on Dec. 31, 2016, up from 0.54 as on Dec. 31, 2015. Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: editor@irisindia.net
