Invesco(US:IVZ)2025-04-28 17:53Financial Performance - Operating revenues for Q1 2025 were $1,529.2 million, an increase from $1,475.3 million in Q1 2024, representing a growth of 3.7%[94] - Net income attributable to Invesco Ltd. for Q1 2025 was $171.1 million, compared to $141.5 million in Q1 2024, reflecting a year-over-year increase of 20.9%[94] - Adjusted operating income for Q1 2025 was $349.5 million, compared to $296.5 million in Q1 2024, marking an increase of 17.9%[94] - The adjusted diluted EPS for Q1 2025 was $0.44, up from $0.33 in Q1 2024, representing a growth of 33.3%[94] - Net revenues increased to $1,108.7 million for the three months ended March 31, 2025, compared to $1,053.2 million for the same period in 2024[157] - Net income attributable to Invesco increased to $171.1 million from $141.5 million, with adjusted net income rising to $200.5 million from $148.4 million[159] Assets Under Management (AUM) - Assets Under Management (AUM) reached $1,844.8 billion at the end of Q1 2025, up from $1,662.7 billion in Q1 2024, indicating a growth of 10.9%[94] - Total AUM as of March 31, 2025, was $1,844.8 billion, a slight decrease from $1,846.0 billion at the beginning of the year[103] - Active AUM as of March 31, 2025, was $1,041.3 billion, up from $995.7 billion at the end of March 2024, reflecting a 4.6% increase[103] - Passive AUM as of March 31, 2025, was $803.5 billion, compared to $667.0 billion at the end of March 2024, indicating a 20.4% increase[103] - The average long-term AUM for the three months ended March 31, 2025, was $1,326.8 billion, compared to $1,164.1 billion in the same period of 2024, representing a 14% increase[103] Cash Flow and Dividends - The company approved an increase in its quarterly dividend from $0.205 to $0.21 per share, effective for the second quarter of 2025[85] - The company declared a cash dividend of $0.21 per common share for Q1 2025, payable on June 3, 2025[192] - Financing cash outflows for the three months ended March 31, 2025, included $92.5 million in common dividend payments, $59.2 million in preferred dividend payments, and $25.2 million in common share repurchases[190] Share Repurchase and Capital Management - During Q1 2025, the company repurchased 1.5 million common shares for $25 million in the open market[85] - The company entered into an agreement to repurchase $1 billion of Series A Preferred Stock, enhancing its leverage profile and balance sheet flexibility[86] - The company repurchased 1.5 million common shares for $25 million during the three months ended March 31, 2025[178] Market Performance and Flows - Long-term inflows for the three months ended March 31, 2025, were $122.0 billion, compared to $80.3 billion in the same period of 2024, representing a 52.1% increase[109] - Total net flows for the three months ended March 31, 2025, were $32.6 billion, up from $16.5 billion in the same period of 2024[109] - The company reported net flows in money market funds of $10.0 billion for the three months ended March 31, 2025, compared to $0.7 billion in the same period of 2024[109] Expenses and Cost Management - Total operating expenses decreased by $10.3 million, or 0.8%, to $1,251.9 million for the three months ended March 31, 2025, compared to $1,262.2 million in 2024[138] - Employee compensation decreased to $464.6 million from $472.7 million, primarily due to a reduction in common share-based awards[141] - Service and distribution fees decreased by $6.1 million, or 1.6%, to $370.9 million for the three months ended March 31, 2025, compared to $377.0 million in 2024[131] Tax and Interest - The effective tax rate decreased to 22.5% from 24.3%, primarily due to favorable tax resolutions[154] - Interest expense decreased to $13.1 million from $15.9 million, reflecting a 17.6% reduction[149] Strategic Initiatives - A new strategic product and distribution partnership was announced with Barings, involving an initial investment of $650 million to expand private markets business[87] - The company's joint venture, Invesco Great Wall, reported net revenues of $78.2 million and average AUM of $96.5 billion for the three months ended March 31, 2025, compared to $74.7 million and $83.7 billion in 2024[135] Market Conditions - Market losses for the three months ended March 31, 2025, amounted to $(42.2) billion, contrasting with market gains of $68.0 billion in the same period of 2024[109] - Inflationary pressures may increase the company's cost structure, potentially impacting net income if not recoverable through pricing increases[205]