Apollo Management(US:APO)2024-08-07 22:17Financial Performance - Adjusted Net Income for the quarter was $150 million, representing a 15% increase compared to the previous quarter[19]. - The company reported a significant increase in Retained Earnings, which rose to $4.4 billion from $3.0 billion, marking a growth of approximately 47.3%[47]. - Net income for Q2 2024 was $1,177 million, up 56.7% from $750 million in Q2 2023[51]. - Comprehensive income attributable to Apollo Global Management, Inc. was $673 million for Q2 2024, compared to $369 million in Q2 2023, an increase of 82.3%[51]. - The company reported a diluted earnings per share of $1.35 for Q2 2024, compared to $1.00 for Q2 2023, representing a 35% increase[50]. - The company recognized gains of $18 million in other comprehensive income associated with cash flow hedges during the three months ended June 30, 2024, compared to losses of $53 million in the same period of 2023[126]. Revenue and Growth - The company anticipates a revenue growth of 8% for the next fiscal year, driven by new product launches and market expansion[13]. - Total revenues for Q2 2024 were $6,018 million, a decrease of 56.1% compared to $13,702 million in Q2 2023[50]. - Management fees increased to $462 million in Q2 2024, compared to $452 million in Q2 2023, reflecting a growth of 2.2%[50]. - Investment income rose significantly to $278 million in Q2 2024, compared to $138 million in Q2 2023, marking a 101.4% increase[50]. - The company reported a total of $70,370 million in Level 3 assets, with a loss of $422 million attributed to various investments[202]. Assets and Liabilities - The company reported a total Assets Under Management (AUM) of $500 billion, reflecting a 10% increase year-over-year[19]. - Total Assets increased to $346.5 billion as of June 30, 2024, up from $313.5 billion at the end of 2023, representing a growth of approximately 10.5%[44]. - Total Liabilities increased to $318.1 billion, up from $288.2 billion, reflecting a growth of about 10.4%[47]. - The total liabilities for the company are $20,908 million, with Asset Management liabilities at $64 million and Retirement Services liabilities at $20,844 million[174]. - The company has $1,320 million in mortgage loans classified under investments in related parties, indicating ongoing financial relationships[176]. Investments and Capital Management - The company is investing $50 million in research and development for new technologies aimed at enhancing service delivery[19]. - The company is focused on expanding its market presence through strategic mergers and acquisitions, enhancing its competitive position[26]. - The company has set a target of achieving a 12% return on equity over the next three years[19]. - The company issued $5,652 million in debt during the first half of 2024, compared to $2,417 million in the same period of 2023[64]. - The company recognized $152 million in revenue during the first half of 2024 that was previously deferred as of January 1, 2024[73]. Market and User Engagement - User data showed a 20% increase in active users, reaching 2 million by the end of the quarter[19]. - The company plans to enter three new international markets by the end of the next fiscal year, targeting a 5% market share in each[19]. - The company reported a significant increase in fee-generating AUM, which consists of assets on which management fees are earned[23]. Risk Management - The management highlighted ongoing efforts to mitigate risks associated with inflation and interest rate fluctuations[13]. - The company has established counterparty exposure limits to manage credit risk associated with over-the-counter derivatives[145]. Cash Flow and Liquidity - Cash flows from operating activities for the first half of 2024 were $1,403 million, down from $4,622 million in the same period of 2023[64]. - Cash and cash equivalents increased to $15,858 million as of June 30, 2024, compared to $12,070 million in the same period of 2023, reflecting a growth of 31%[66]. - The company reported $13,004 million in cash and cash equivalents within Retirement Services, indicating strong liquidity[176]. Derivatives and Financial Instruments - The total notional amount of derivatives designated as hedges was $1,010 million as of June 30, 2024, with fair value assets of $958 million and liabilities of $781 million[127]. - Athene's derivative assets as of June 30, 2024, were valued at $7,488 million, with derivative liabilities of $3,212 million, resulting in a net derivative asset position of $4,276 million[148]. - The total fair value of derivative assets is $7,488 million, showcasing the company's engagement in derivative trading[174].