home Latest News Taaleri Plc's Half-Year 2019: Assets Under Management and Earnings From Investment Operations Grew, Result Burdened by Declined Performance Fees – GlobeNewswire

Taaleri Plc's Half-Year 2019: Assets Under Management and Earnings From Investment Operations Grew, Result Burdened by Declined Performance Fees – GlobeNewswire

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TAALERI PLC HALF-YEAR FINANCIAL REPORT 2019                                 STOCK EXCHANGE RELEASE   15 AUGUST 2019 AT 8:30 AM (EET)
Assets Under Management and Earnings From Investment Operations Grew, Result Burdened by Declined Performance FeesThe Group in January-June 2019Income was EUR 30.9 (35.2) million. The decrease was mainly due to lower performance fees.Continuing earnings declined by 8.6 per cent to EUR 24.5 (26.9) million.Earnings from investment operations doubled to EUR 6.8 (3.0) million.Operating profit was EUR 6.4 (12.4) million, or 20.6 (35.1) per cent of income.Earnings per share were EUR 0.18 (0.32).Assets under management grew 15.6 per cent to EUR 6.6 (5.7) billion. Growth was strongest in private equity funds.The Guaranty insurance portfolio remained on last year’s level and totaled EUR 1.6 (1.7) billion.Taaleri Energia made an international breakthrough in renewable energy with its SolarWind II fund.*annualized
Income statement items are compared with figures for the corresponding period last year. The balance sheet is compared to the situation at the end of 2018, unless otherwise stated.
CEO Robin LindahlThe beginning of the year was somewhat weaker than last year for Taaleri. Income totalled EUR 30.9 million and operating profit 6.4 million, corresponding to a margin of 21 per cent. The number of employees was adjusted in the Wealth Management and Financing segments during the springAssets under management grew by more than 15 per cent to EUR 6.6 billion. Taaleri strengthened its position as a forerunner in responsible investments by launching three new private equity funds – Taaleri Solarwind II, Taaleri Daycare Properties and Taaleri Wind IV. In addition, two special mutual funds started their operations. Continuing earnings in Wealth Management decreased 10 per cent during the first half-year due to the challenging market environment at the end of last year. The segment’s continuing earnings are estimated to be back on growth track during the end of this year.Taaleri signed a funds distribution agreement with Nordnet and is now able to reach more than 200,000 private investors. Taaleri Group’s corporate finance arm, Taaleri Kapitaali Oy, received Certified Adviser status on the First North marketplace. From now on, Taaleri Kapitaali’s service offering will include IPOs both on the stock exchange main list and on the Nasdaq First North marketplace.Garantia’s income grew 69 per cent to EUR 10.4 million due to the success of the investment operations. Net earned premiums grew 23 per cent to EUR 6.8 million, but net income from guaranty insurance operations declined 6 per cent to EUR 5.5 million as a result of change in claim provisions. Garantia’s return on investments at fair value totalled 5.3 per cent.Taaleri Energia made its international breakthrough with the launch of Taaleri SolarWind II. The international renewable energy fund Taaleri Solarwind II raised commitments of EUR 220 million during its first closing with a strong institutional investor base. Good progress and international recognition was also seen in the development of the renewable projects in Taaleri Solarwind I. The Texas-based 275-MW Truscott-Gilliland Wind farm project is being enhanced with a new turbine supplier so that electricity production can start 2021.The prevailing megatrends continue supporting Taaleri’s growth in Renewable Energy, Circular Economy, Real Estate and the related Financial Services. Responsibility is the foundation of our business, and through impact investing we positively influence on the surrounding community and the environment. We will continue creating interesting investment opportunities, and, in addition to economic returns, we want to offer our customers a way to positively impact the surrounding society and the environment.”Half-Year Review 1 January–30 June 2019Operating environmentEconomic growth in the euro area was stronger than expected as the continued improvement of employment supported the economic development, but the economic outlook in the area weakened due to the slowing of the global economy and weak international trade. Economic growth in Finland, however, slowed in the first half of 2019.  The key factors impacting the economic outlook in the euro area are geopolitical factors, protectionism, and the uncertainty related to the weaknesses of emerging markets. Stock market development was strong, even though economic growth in the euro area and globally slowed down. The risk appetite and activeness of investors increased, and the looser policy of central banks had a favourable impact on stock market development. International politics in Europe and around the world is creating uncertainty in future market development.Decelerating climate change is one of the key factors for a sustainable future and it requires significant investments. The EU has set a target to grow the share of renewable energy sources in energy production. Today wind power and solar energy are market-competitive alternatives in relation to other energy forms, which help the transition to renewable energy sources.In addition to the investment environment and climate change, our operating environment and our company are directly and indirectly impacted by major trends in the financial sector, trends like changes in customer behaviour, the Americanization of the capital markets, and regulation. Creating responsible solutions and flexible structures gives us much more ability to handle the major changes targeting the sector – and ideally to also benefit from them.
Financial resultIncome and operating profitSegment-specific income and operating profit