Magellan shares dive over 10% on lower profit, dividend
Make us a preferred source
Make us a preferred source on Google
More news: Magellan shares tanked in early trade after the financial group reported lower first-half profit and cut its interim dividend.
Magellan shares were down 10.9% to $9 at 11:05am AEDT, having shed nearly 20% since the turn of the year.
Jarden analysts called the earnings result "robust overall" but warned of heightened risks to net flows at Magellan's infrastructure business in the near-term following the departure of long-serving head of investments and infrastructure lead Gerald Stack.
Magellan Financial Group trims dividend as profit falls 10%
More news: Magellan Financial Group has posted a 10% drop in net profit after tax to $94 million for the six months to December 2024.
Assets under management (AUM) was up 3% to $38.1 billion and performance fees were $6.1 million up from $0.1 million.
Magellan also declared an interim dividend of 26.4 cents, down 10% from the prior corresponding period.
What they said: Magellan executive chair Andrew Formica said: “We know that our success is dependent on the trust placed in us by our clients, a trust we do not take lightly. As I hand over executive leadership [to Sophia Rahmani], I am confident that MFG will continue to focus on the delivery of excellence in all aspects of our business and maintain our focus on investment performance and cost management”.
“Looking ahead, we are confident in our ability to rebuild and grow. With a new executive leadership structure in place and a clear focus on our strategic priorities, we are well-positioned to capitalise on opportunities and deliver sustainable growth.”
Magellan confirms Sophia Rahmani as new CEO, names new CFO
The news: Fund manager Magellan Financial Group has confirmed Sophia Rahmani as its new chief executive and managing director from 3 March.
The context: The company had previously announced that Rahmani, former CEO of Maple-Brown Abbott, would replace its previous CEO David George last year.
Rahmani joined Magellan in May 2024 as managing director of the company's main operating subsidiary, Magellan Asset Management, and will retain the responsibilities of that role.
Andrew Formica, who stepped into the role of executive chair following George's departure, will revert to his former position of non-executive chairman.
Magellan has also appointed former GPT Group executive Dean McGuire as chief financial officer, following the resignation of Kirsten Morton in November.
The sources: ASX announcement, ASX announcement, Jarden research
