Platinum Asset Management (PTM) H1 2025 earnings summary

Executive summary

• Focus shifted to a three-year turnaround strategy after ceasing external discussions, with early progress in cost control, margin resilience, and investment performance improvements.

• Outflows remain a challenge but are moderating, especially outside the flagship international fund, with performance improving in several strategies.

• Leadership and process changes, including new CEO and Portfolio Manager appointments, target underperformance in the international fund.

• New fund launches, expanded distribution, and product rationalisation are underway to drive future growth.

• Special fully-franked dividend of AUD 0.20 per share paid in December 2024, with an additional interim dividend declared.

Financial highlights

• Average funds under management (FUM) for the half was AUD 12 billion, down 26% year-over-year, ending at AUD 11 billion.

• Total revenue fell 25% year-over-year to AUD 69.4 million, with statutory net profit after tax dropping 55% to AUD 15.9 million.

• EBIT margin at 43%, down from 48% in the prior year, with adjusted expenses down 18% year-over-year.

• Basic EPS was 2.85 cents, compared to 6.29 cents in the previous year.

• Net unrealized gains from seed investments were less than AUD 1 million, down AUD 1.1 million from the prior year.

Outlook and guidance

• Expense reduction delivery is ahead of schedule, with 136% of FY24 target achieved and confidence in meeting FY2026 incremental savings targets.

• Further cost reductions and new product launches are planned, with outflow moderation and improved fund performance expected to support future growth.

• Most future profits are expected to be distributed as dividends, subject to capital requirements.