The Janus Henderson Group PLC (ASX: JHG) share price looks likely to crash lower today following the release of the fund manager’s second quarter update.
Over in the United States the company’s shares sank over 7% during overnight trade.
How did Janus Henderson perform in the second quarter?
Earlier this year in the first quarter of FY 2019 Janus Henderson reported a disappointing 11.6% decline in revenue.
Unfortunately for shareholders, the company’s poor performance has continued in the second quarter. For the three months to June 30, Janus Henderson posted revenue of US$525.9 million, which was down 9.5% on the prior corresponding period.
This led to the company reporting half year revenue of US$1,055.2 million, which was an 11% decline on the prior corresponding period.
On the bottom line Janus Henderson reported net income of US$109.4 million in the second quarter and US$229.7 million in the first half. The latter was a disappointing 22% decline compared to the prior corresponding period.
At the end of the period the company had assets under management of US$359.8 billion, which was up 1% compared to the prior quarter. Management advised that this reflected positive markets partially offset by net outflows of US$9.8 billion.
The company’s chief executive officer, Dick Weil, appeared to be a touch disappointed with the performance but optimistic on the future.
He said: “Our investment performance and financial results in the second quarter and over longer periods are strong; however, the net flow result remains challenging. Overall, we are seeing improving trends across many areas of our business, but the current concentration of outflows is masking much of this progress. We remain committed to the strategic agenda we have laid out, which is to provide dependable excellence and deliver on our promises to our clients, shareholders and employees.”
Janus Henderson isn’t the only company reporting its latest results today. Also handing in its report card this morning is mining giant Rio Tinto Limited (ASX: RIO). Stay tuned for that result.
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