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Investing.com -- Shares of Ashmore Group PLC (LSE:LON:ASHM) edged down 1% today after the investment manager reported adjusted net revenues 2% below consensus, driven by lower management fees and other income.
The company’s management fees came in 4% under expectations, with a management fee margin of 36 basis points, a decline compared to the previous year due to private equity realizations and flows into lower margin overlay funds, despite higher assets under management in equities.
The firm’s performance fees were better than anticipated at £7.9 million, compared to the £6.9 million consensus. Hedging gains also exceeded expectations, realizing £2.4 million against a £0.7 million forecast. However, other income did not meet predictions, arriving at £1.3 million, falling short of the £2.2 million consensus.
On a positive note, Ashmore demonstrated effective cost control, resulting in a 7% adjusted EBITDA beat. Staff costs were lower than anticipated at £35.4 million, with variable compensation costs down 4% at £19.6 million. Fixed staff costs also came in lower at £15.8 million. These savings contributed to an adjusted EBITDA of £33.7 million, with a margin that was 3.6 percentage points higher at 42.3%.
Ashmore’s balance sheet remains robust, with £646 million in capital resources and £348 million in cash, which is approximately 29% of the market cap. The company’s interim dividend for the first half of 2025 is maintained at 4.8 pence per share, in line with the previous year, aligning with expectations.
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