Janus Henderson(US:JHG)2023-08-02 10:07Revenue and Income - Revenue for Q2 2023 was $516.5 million, a decrease of $39.0 million, or 7%, compared to Q2 2022[96] - Total revenue for the three months ended June 30, 2023, was $516.5 million, a decrease of 7% compared to $555.5 million for the same period in 2022[116] - Adjusted revenue for the same period was $401.9 million, down 6% from $427.7 million in 2022[143] - Operating income for Q2 2023 was $117.9 million, a decrease of $26.0 million, or 18%, compared to Q2 2022[97] - Adjusted operating income decreased to $121.5 million, representing a decline of 18.6% from $149.3 million in 2022[143] - Net income attributable to the company for Q2 2023 was $89.8 million, a decrease of $6.4 million, or 7%, compared to Q2 2022[98] - Net income attributable to the company was $89.8 million, a decrease of 6.7% compared to $96.2 million in the prior year[143] Assets Under Management (AUM) - Assets Under Management (AUM) increased to $322.1 billion, up 4% from March 31, 2023, primarily due to market performance and U.S. dollar depreciation[96] - Total Assets Under Management (AUM) as of June 30, 2023, reached $322.1 billion, an increase from $299.7 billion as of June 30, 2022, representing an 7.9% year-over-year growth[109] - AUM increased to $322.1 billion, up 4% from March 31, 2023, mainly due to market performance and U.S. dollar depreciation[96] - AUM as of June 30, 2023, increased by $34.8 billion, or 12%, from December 31, 2022, driven by positive market movements of $27.3 billion and net sales of $5.0 billion[100] - Average AUM for the three months ended June 30, 2023, was $315.8 billion, down 4% compared to $328.5 billion for the same period in 2022[108] - The AUM for Equities decreased from $244.3 billion in December 2021 to $177.0 billion by June 30, 2022, reflecting a decline of 27.5%[102] - Institutional client AUM increased to $73.9 billion as of June 30, 2023, up from $61.0 billion at the end of 2022, marking a 21.3% increase[104] - The AUM for Alternatives decreased significantly by 28% from $13.2 billion in the three months ended June 30, 2022, to $9.5 billion in the same period of 2023[108] - The AUM performance by capability showed that Equities had $199.5 billion, Fixed Income $65.9 billion, Multi-Asset $47.7 billion, and Alternatives $9.0 billion as of June 30, 2023[101] - Approximately 31% of the AUM was non-USD-denominated, with a $2.5 billion increase attributed to currency fluctuations during the period[101] Expenses - Total operating expenses for Q2 2023 were $398.6 million, a decrease of $13.0 million, or 3%, compared to Q2 2022[96] - Total operating expenses for the three months ended June 30, 2023, were $398.6 million, a decrease of 3% compared to $411.6 million for the same period in 2022[123] - Management fees decreased by $30.1 million during the three months ended June 30, 2023, primarily due to a decline in average AUM[117] - Performance fees decreased by $2.5 million during the three months ended June 30, 2023, primarily due to a decline in the performance of absolute return funds[120] - Shareowner servicing fees decreased by $3.0 million during the three months ended June 30, 2023, primarily due to a decline in average AUM[121] - Distribution expenses decreased by $13.2 million during the three months ended June 30, 2023, primarily due to a decline in average AUM[128] - Marketing expenses increased by $1.5 million during the three months ended June 30, 2023, primarily due to an increase in advertising campaigns[130] - Employee compensation and benefits increased by $2.7 million during the three months ended June 30, 2023, primarily driven by an increase in variable compensation[124] - General, administrative and occupancy expenses decreased by $12.1 million during the six months ended June 30, 2023, primarily due to a reduction in rent expense[131] Cash Flow and Dividends - Cash flows provided by operating activities for the six months ended June 30, 2023, were $63.2 million, compared to $105.4 million in 2022[161] - Cash balance at the end of the period on June 30, 2023, was $1,024.4 million, compared to $873.7 million at the end of the same period in 2022[161] - The company declared a $0.39 per share dividend for Q2 2023 on August 1, 2023[96] - The company declared a dividend of $0.39 per share for Q2 2023, totaling $64.7 million paid on February 28, 2023, and $64.6 million paid on May 31, 2023[153] - Dividends paid to shareholders decreased slightly to $129.3 million in the first half of 2023 from $129.8 million in 2022[166] Market Performance and Outlook - Net outflows for Q2 2023 were $0.5 billion, compared to net outflows of $7.8 billion in Q2 2022[96] - The company expects net outflows in Q3 2023 to be between $3.5 billion and $5 billion[141] - Full-year 2023 aggregate negative performance fees are anticipated to be at the lower end of the range of negative $35 million to negative $45 million[142] - The company plans to focus on expanding its market presence and enhancing its product offerings to drive future growth[104] - The company anticipates an increase in non-compensation expenses due to investments in marketing and advertising in the U.S. intermediary business[140] Tax and Non-Operating Income - The effective tax rate for the three months ended June 30, 2023, was 22.0%, a decrease from 115.4% in 2022, while the six-month rate was 21.6% compared to 46.1% in 2022[138] - Non-operating income improved significantly, with investment gains (losses), net increasing by $116.3 million for the three months and $166.1 million for the six months ended June 30, 2023, compared to the same periods in 2022[134] - Non-operating income improved by $6.4 million during the three months ended June 30, 2023, primarily due to higher interest rates on cash balances[136]