Invesco's Q2 Profit Drop is Smaller Than Expected
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Monday, July 27, 2009

Invesco's Q2 Profit Drop is Smaller Than Expected

Invesco released its latest earnings report Monday, in which the manager of AIM and PowerShares posted profits of $75.7 million. The number represented a 53.5% drop from the $162.8 million reported for the same quarter last year. Invesco also reported a net income of 18 cents per share on a revenue of $625.1 million.

Earnings fell less than expected, however, as analysts surveyed by Thomson Reuters had expected a profit of 16 cents per share on $596.9 of revenue.

Assets under management at the end of the second quarter were $388.7 billion, down from $461.3 billion at quarter's end last year. Operating revenue dropped to $625 million from $935 million, driven down mainly by lower levels of investment-management fees.

Of the total AUM at the end of Q2, $141.1 billion lay in equity, $94.4 billion in money market, $68.4 in income, $36.3 in balanced and $48.5 billion in alternative strategies. $169 billion of the firm's assets were distributed through retail channels, while $205.9 billion were distributed through institutional channels.

An Invesco earnings presentation noted that "disciplined expense management along with recovering markets allowed margins to rapidly expand," and that accelerating flows into the U.S retail business marked a major improvement to the firm's competitive position.

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