GAM (GAM) H2 2024 earnings summary

Executive summary

• IFRS net loss reduced to CHF 70.9m from CHF 82.1m year-over-year; underlying loss before tax increased to CHF 66.8m from CHF 49.5m.

• AuM declined to CHF 16.3bn from CHF 19.3bn, mainly due to net outflows and business restructuring.

• Cost optimization led to a 20% decrease in underlying expenses; full impact expected in FY 2025 and beyond.

• CHF 100m rights issue completed, making NJJ Holding SAS the majority shareholder; loan facility extended to December 2027.

• Targeting profitability in fiscal year 2026, with a focus on Specialist Active Investing, Alternatives, and Wealth Management.

Financial highlights

• Net management fees and commissions fell to CHF 75.9m from CHF 124.4m, reflecting lower AuM and fee margin.

• Underlying expenses decreased 20% to CHF 142.5m; headcount reduced by 38% to 294 FTEs.

• Diluted underlying EPS improved to -0.25 CHF from -0.32 CHF.

• Management fee margin dropped to 40.4bps from 49.7bps, mainly due to asset mix changes and sub-advisory agreements.

• No dividend proposed for FY 2024 due to the net loss.

Outlook and guidance

• Full benefit of cost optimization initiatives expected in FY 2025 and beyond.

• Focus remains on growing AuM and revenues, rebuilding distribution, and launching new products.

• Profitability targeted for fiscal year 2026, subject to market conditions and sustainable net inflows.