Magellan Financial Group (MFG) H2 2024 earnings summary

Executive summary

• Stability restored through leadership transitions, board renewal, and resolution of legacy issues, improving employee engagement and client relationships.

• Strategic partnership with Vinva Investment Management, acquiring a 29.5% stake for AUD 138.5 million, diversifies revenue streams and enhances global distribution.

• Funds under management (FUM) stabilized, with outflows declining and FUM rising to AUD 38.4 billion by July-end, above the FY24 average.

• Performance fees reached AUD 19.2 million, the highest since FY21, mainly from Global Equities.

• Significant growth in contribution from associates, with AUD 11 million after-tax profit, reversing a prior year loss.

Financial highlights

• Adjusted net profit after tax for FY24 was AUD 177.9 million, up 2% year-on-year; statutory NPAT up 31% to AUD 238.8 million.

• Adjusted diluted EPS increased 3% to AUD 0.982 per share.

• Management fees declined 22% to AUD 257.9 million, reflecting a 25% decrease in average FUM.

• Group adjusted expenses down 16% to AUD 106.9 million; cost-to-income ratio (excluding performance fees) at 39.3%.

• Total dividends paid were AUD 0.651 per share, franked at 50%.

Outlook and guidance

• FY25 funds management operating expenses guided at AUD 105–110 million, reflecting investment in global distribution and Vinva partnership.

• Vinva partnership expected to be EPS neutral in FY25 and accretive from FY26.

• Focus on U.S. and global distribution expansion, with continued investment in platform capabilities.

• Diversification of revenue underway, with strategic growth opportunities locally and globally.

• Ongoing review of capital management, with further updates expected at the February 2025 interim results.