Apollo's flat second-quarter earnings miss expectations

Everi Holdings

01/08/2024 11:32

By Echo Wang
       NEW YORK, Aug 1 (Reuters) - Apollo Global Management
 APO.N  reported flat second-quarter adjusted net income on
Thursday 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 investor in private equity and corporate
credit 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 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. 
    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, 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. 
    In the second quarter, Apollo 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 declared a dividend of 46.25 cents per share.
    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) and reached a deal to acquire
International Game Technology's  IGT.N  gaming division
alongside Everi Holdings, 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.

 (Reporting by Echo Wang in New York; Editing by Sonali Paul)
 ((E.Wang@thomsonreuters.com; +13322191785; Reuters Messaging:
@deer_echo_))