NEW YORK – On Thursday, Apollo Global Management (NYSE: APO) reported flat second-quarter adjusted net income that missed Wall Street’s expectations, as a spike in revenue generated from fees was offset by a drop in income from its retirement business.
The New York-based private equity and corporate credit investor posted second-quarter adjusted net income of $1.01 billion, almost the same as a year ago.
That translated into adjusted net income per share of $1.70, which came in lower than the average Wall Street analyst estimate of $1.76, according to LSEG data.
Apollo (NYSE: APO) reported a quarterly record in fee-related earnings of $516 million in the second quarter, a 16.7% rise from the year-earlier period, for asset management and arranging financing for deals.
“We generated record fee-related earnings in the second quarter behind particularly strong momentum in asset management,” Apollo chief executive officer Mark Rowan said.
However, Apollo posted a 12.5% decline in spread-related earnings, a performance metric for its Athene retirement services unit, to $710 million in the second quarter.
Apollo’s total assets under management increased by approximately 13% year-over-year to $696 billion, a growth split evenly between asset management and retirement services. This was partially offset by $61 billion in outflows and $29 billion in assets being divested.
Apollo also reported a reserve of unspent capital of $68 billion and deployed $70 billion in investments. Debt originations set a quarterly record, reaching $52 billion. The company said it would pay a dividend of 46.25 cents per share.
Apollo (NYSE: APO) shares were down 2.3% at $122.38 in early trading, giving the alternative asset manager a market value of about $69.6 billion. The shares are up 31% year to date.
Apollo inked a series of deals in the last few weeks. The firm agreed to buy British parcel delivery company Evri for 2.7 billion pounds ($3.47 billion). It reached a deal to acquire International Game Technology’s gaming division alongside Everi Holdings (NYSE: EVRI), a gambling machines company, for a combined $6.3 billion in an all-cash deal. Apollo also provided a $700 million investment to Sony Music Group.
(Source: ReutersReuters)
Edward Cooke is a financial analyst, freelance writer, and editor. He has six years of experience in financial journalism. He has an in-depth understanding of equities markets, tracking major indices and providing real-time analysis on stock price movements, corporate earnings, and market sentiment. Read Full Bio
