- BlackRock reported second-quarter earnings on Friday.
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BlackRock’s revenue fell 2% year-on-year in the second quarter because of lower base fees and performance fees. Coupled with $61 million of fund launch costs, that contributed to a 7% drop in net income to about $1 billion in the period. More positively, the investment manager recorded a 9% increase in assets under management.
“BlackRock generated $151 billion of total net inflows in the second quarter, a record 9% annualized organic asset growth,” BlackRock CEO Laurence Fink said in the earnings statement. “While organic base fee growth of 3% and the year-over-year revenue decline reflected certain market headwinds, our second-quarter results validate BlackRock’s unique ability to bring together the entire firm to meet clients’ needs in any market environment.”
Here are the rest of the key numbers:
- Assets: $6.8 trillion, up 9% year-on-year (2018: $6.3 trillion)
- Revenue: $3.52 billion, versus analysts’ expectations of $3.57 billion and down 2% year-on-year (2018: $3.61 billion)
- Net income: $1 billion, versus analysts’ predictions of $1.05 billion and down 7% year-on-year (2018: $1.073 billion)
- Adjusted earnings per share: $6.41 against expectations of $6.51
- Total net flows: $125.4 billion
- iShares: $36.1 billion
- Institutional: $87.4 billion
BlackRock continued to see strong growth in its technology business, a key long-term focus as the firm seeks to differentiate itself from other asset managers. Rising revenue from Aladdin, the investment-management platform, drove technology services revenue up 20% to $237 million, or 6.7% of the firm’s total revenue.
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