eQ PLC STOCK EXCHANGE RELEASE
3 November 2016 at 8:00 a.m.
January to September 2016 in brief
- During the period under review, the Group's net revenue grew by 20 per cent to EUR 26.2 million (EUR 21.7 million from 1 Jan. to 30 Sept. 2015).
- The Group’s net fee and commission income increased to EUR 24.7 million (EUR 20.1 million).
- The Group’s net investment income from own investment operations was EUR 1.5 million (EUR 1.6 million).
- The Group’s operating profit grew by 27 per cent to EUR 12.1 million (EUR 9.5 million).
- The Group’s profit was EUR 9.5 million (EUR 7.5 million).
- The consolidated earnings per share grew by 27 per cent to EUR 0.26 (EUR 0.21).
- The net cash flow from own investment operations was EUR 2.4 million (EUR 6.2 million from 1 Jan. to 30 Sept. 2015) and the change in fair value was EUR -1.0 million (EUR 0.3 million).
July to September 2016 in brief
- In the third quarter, the Group’s net revenue grew by 17 per cent to EUR 7.8 million (EUR 6.7 million from 1 July to 30 Sept. 2015).
- The Group’s net fee and commission income increased to EUR 6.9 million (EUR 6.0 million).
- The Group’s net investment income from own investment operations was EUR 0.9 million (EUR 0.7 million).
- The Group’s operating profit grew by 23 per cent to EUR 4.0 million (EUR 3.2 million).
- The Group’s profit was EUR 3.2 million (EUR 2.6 million).
- The consolidated earnings per share grew by 24 per cent to EUR 0.09 (EUR 0.07).
| Key ratios | 1-9/16 | 1-9/15 | Change % | 7-9/16 | 7-9/15 | Change % | 1-12/15 | |
| Net revenue, Group, M€ | 26.2 | 21.7 | 20% | 7.8 | 6.7 | 17% | 30.5 | |
| Net revenue, Asset Management, M€ | 18.6 | 16.2 | 15% | 6.5 | 5.0 | 30% | 21.7 | |
| Net revenue, Corporate Finance, M€ | 6.3 | 4.2 | 50% | 0.5 | 1.1 | -53% | 7.0 | |
| Net revenue, Investments, M€ | 1.3 | 1.4 | -7% | 0.8 | 0.6 | 33% | 1.8 | |
| Net revenue, Group administration | ||||||||
| and eliminations, M€ | 0.0 | 0.0 | 0% | 0.0 | 0.0 | 0% | 0.0 | |
| Operating profit, Group, M€ | 12.1 | 9.5 | 27% | 4.0 | 3.2 | 23% | 13.2 | |
| Operating profit, Asset Management, M€ | 8.8 | 7.3 | 20% | 3.4 | 2.4 | 44% | 9.6 | |
| Operating profit, Corporate Finance, M€ | 3.0 | 1.9 | 59% | 0.0 | 0.5 | -99% | 3.4 | |
| Operating profit, Investments, M€ | 1.3 | 1.4 | -7% | 0.8 | 0.6 | 33% | 1.8 | |
| Operating profit, Group administration, M€ | -1.0 | -1.1 | 9% | -0.3 | -0.2 | -9% | -1.6 | |
| Profit for the period, M€ | 9.5 | 7.5 | 27% | 3.2 | 2.6 | 24% | 10.5 | |
| Key ratios | 1-9/16 | 1-9/15 | Change % | 7-9/16 | 7-9/15 | Change % | 1-12/15 |
| Earnings per share, € | 0.26 | 0.21 | 27% | 0.09 | 0,07 | 24% | 0.29 |
| Equity per share, € | 1.65 | 1.82 | -9% | 1.65 | 1.82 | -9% | 1.91 |
| Cost/income ratio, Group, % | 52.6 | 54.7 | -4% | 47.1 | 50.0 | -6% | 55.1 |
| Liquid assets, M€ | 12.1 | 18.1 | -33% | 12.1 | 18.1 | -33% | 21.6 |
| Private equity investments, M€ | 20.6 | 23.0 | -10% | 20.6 | 23.0 | -10% | 22.5 |
| Interest-bearing liabilities, M€ | 0.0 | 0.0 | 0% | 0.0 | 0.0 | 0% | 0.0 |
| Assets under management, € billion | 8.4 | 7.4 | 14% | 8.4 | 7.4 | 14% | 7.6 |
Janne Larma, CEO
eQ’s favourable profit development continued. In the first nine months, the net revenue of the Group grew by 20 per cent to EUR 26.2 million and the operating profit by 27 per cent to EUR 12.1 million.
eQ Asset Management’s success continued
The business operations of eQ Asset Management developed in an excellent manner in the third quarter. In the first nine months, the net revenue of the Asset Management segment increased by 15 per cent to EUR 18.6 million and the operating profit by 20 per cent to EUR 8.8 million. The increase of the net revenue was based on the growth of real estate and private equity asset management. The strong sales of the real estate funds continued, and during the nine-month period, subscriptions worth EUR 176 million were made in the two real estate funds. Within traditional asset management, the fee and commission income grew compared with the two first quarters, but was at a lower level than the year before during the nine-month period. Our portfolio management was very successful during the first nine months of the year, as 64% of the funds under our own management exceeded their benchmark indices.
During the past year, eQ has markedly improved its position as institutional asset manager in Finland. According to a study by SFR, the use of eQ as asset manager grew clearly the most, and we are the third most widely used institutional asset manager in Finland.
Advium’s result grew
Advium’s net revenue increased by 50 per cent to EUR 6.3 million and the operating profit grew by 59 per cent to EUR 3.0 million. In the third quarter, Advium acted as advisor in one finalised transaction when the DEGI Europe Fund managed by Aberdeen sold Tieto’s head office property to Veritas Pension Insurance Company. The market continues to be very active, and no change is visible in the market situation. In September, Advium was ranked the best Finnish investment bank in the real estate sector in an enquiry by the distinguished Euromoney magazine already for the 10th time.
The result of the Investments segment almost at previous year's level
The net revenue and operating profit of the Investments segment grew in the third quarter, as compared with the two previous quarters. The net revenue and operating profit for the nine-month period were almost at the same level as the year before, i.e. EUR 1.3 million (EUR 1.4 million from 1 Jan. to 30 Sept. 2015). The net cash flow from investments was EUR 2.4 million (EUR 6.2 million).
eQ’s market position is very good
Political and economic uncertainty in Europe, the presidential election in the U.S. and the Brexit negotiations are themes that investors will monitor during coming months. Regardless of their outcome, we believe that eQ has an excellent position in the asset management market based on its strong market position within real estate and private equity asset management. In addition, the eQ Forest fund established in the third quarter is well suited for the present market situation. Together with traditional asset management, the above mentioned cornerstones lay a good foundation for the future development of our business operations. The strong market position of Advium also offers good preconditions for the future.
***
eQ’s interim report 1 January to 30 September 2016 is enclosed to this release and it will also be available on the company website at www.eQ.fi.
Additional information: Janne Larma, CEO, tel. +358 9 6817 8920
Distribution: Nasdaq Helsinki, www.eQ.fi, media
eQ Group is a Finnish group of companies specialising in 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 individuals. The assets managed by the Group total approximately EUR 8.4 billion. Advium Corporate Finance, which is part of the Group, offers services related to mergers and acquisitions, real estate transactions and equity capital markets.
More information about the Group is available on our website www.eQ.fi.
