Platinum Asset Management (PTM) H2 2025 earnings summary

Executive summary

• Proposed merger with L1 Capital aims to create a leading long-short and alternative asset manager with $16.5 billion in AUM, significant efficiency gains, and operational synergies.

• Shareholder vote on the merger is scheduled for September 22, with completion targeted for October 1.

• The merged entity will be renamed L1 Group (L1G), remain ASX-listed, and retain fund brands.

• FY25 marked the completion of a multi-year reset program, with improved investment performance in most funds, strong expense control, and a special dividend paid.

• The merger is expected to be highly earnings accretive for shareholders, with substantial cost reductions and efficiency gains targeted.

Financial highlights

• Funds under management (FUM) declined 29% year-over-year to $10.8B, driving a 28% drop in fee revenues.

• Adjusted expenses were reduced by 23%, maintaining a 44% operating margin.

• Statutory net profit after tax dropped 86% to $6.3M, impacted by non-deductible turnaround costs.

• $21.5 million in fully franked dividends paid, totaling $125M in cash distributions.

• Net assets fell by $100 million to $212 million, with $122 million in cash and $107 million in seed investments.

Outlook and guidance

• Merger expected to be highly EPS accretive, with targeted operating cost reductions of 22%-26% from a $134 million cost base.

• Merger with L1 Capital is expected to deliver $20M in annual pre-tax synergies within 12-18 months post-completion.

• Additional $10-$15 million in run-rate expense savings targeted for the next financial year.

• Expanded investment capabilities and product range anticipated to drive future growth.

• Post-merger financial reporting will reflect L1 Capital as the accounting acquirer, with Platinum consolidated from October 1.