Waddell & Reed Financial, Inc. (WDR) has reported 64.37 percent plunge in profit for the quarter ended Dec. 31, 2016. The company has earned $22.42 million, or $0.27 a share in the quarter, compared with $62.92 million, or $0.76 a share for the same period last year. On an adjusted basis, the company has earned $40.01 million, or $0.48 a share for the quarter.

Revenue during the quarter dropped 18.88 percent to $292.91 million from $361.07 million in the previous year period. Total expenses were 87.23 percent of quarterly revenues, up from 74.70 percent for the same period last year. That has resulted in a contraction of 1253 basis points in operating margin to 12.77 percent.

Operating income for the quarter was $37.41 million, compared with $91.36 million in the previous year period.

However, the adjusted operating profit for the quarter stood at $65.43 million.

"Our entire organization is committed to strengthening our competitive position during this period of unprecedented change in our industry," said Philip J. Sanders, chief executive officer of Waddell & Reed Financial, Inc. "We are focused on all aspects of our business, including organizational structure, operational efficiencies, product offerings, and fee levels."

Cash flow from investing activities was $75.87 million from investing activities during the year as against cash outgo of $22.60 million in the last year.

The company has spent $202.91 million cash to carry out financing activities during the year as against cash outgo of $219.48 million in the last year period.