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Partners Group shares tumble on missing market estimates

Published 09/03/2024, 04:56 AM
© Reuters.

Investing.com -- Shares in Partners Group (SIX:PGHN) dropped following its first-half results, missing market expectations.

At 4:55 am (0855 GMT), Partners Group was trading 7.7% lower at CHF 1,129.50.

For the first six months of the year, the Swiss private-equity firm reported a near 8% year-on-year fall in net profit, to CHF 508 million.

Revenue also fell by 7% to CHF 977 million which  was partly due to a 39% decrease in performance fees, despite a 4% increase in management fees.

“However, while fundamentals had improved in H1, transaction markets continued to recover more slowly than expected,” said chief executive, David Layton in a statement. 

Earnings before interest and taxes (EBIT) fell 6.1% year-on-year to CHF 605 million.

"Other financial results (mainly stemming from PGHN's GP commitments) came in 26% below consensus," said analysts at UBS in a note. 

Costs decreased by 9% to 371 million Swiss francs, primarily driven by lower variable performance feerelated personnel expenses which decreased 38% in line with performance fees down 39%, the company said. 

"We note that FX changes had -0.4% impact on the the margin y/y," UBS said. 

“For the full year 2024, we reconfirm our guidance of USD 20 to 25 billion in total client demand,” the company said. This is based on an anticipated stabilization in the investment climate, ongoing interest in its offerings, and an increase in investment activity.

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