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BlackRock 2Q Revenue, Net Income Jump
The firm's assets under management rose 5% to $1.4 trillion.
July 17, 2008
BlackRock Thursday posted a 23% increase in its second quarter net income, earning $274 million for the period.
The New York asset management firm also reported a 44% increase in operating income for the first half of 2008. It also posted $2.14 per share in adjusted earnings through the end of June, marking a 19% increase over its second quarter earnings of $1.80. BlackRock’s net income for the first half of 2008 totaled $516 million, or $3.87 per share and 23% above its first half of 2007 net income.
Its assets under management rose 5% to $1.4 trillion since the end of the first quarter, or 16% more than through the second quarter of 2007.
“We continued to benefit from our diversified business and integrated global platform,” said Laurence Fink, chairman and chief executive of BlackRock, in a statement.
The firm's net income and assets under management weren’t the only increases the asset manager generated. The company had $1.3 billion in second quarter revenues, marking a 26% increase over its second quarter 2007 revenues.
BlackRock’s net inflows in the areas of fixed income, equity and alternative investments totaled $24.2 billion combined. During the second quarter, the asset manager gained $63.2 billion worth of new business, including $43.6 billion in advisory assets.
The $26.1 billion market-capitalized company said its results reflected strong organic growth in domestic and international assets under management, a balanced product mix and diversified client base. However, BlackRock reported a $31 million decline in investment gains from co-investments in private equity products.
The firm noted that it has $64 billion of new business in its pipeline, which includes $23 billion in long-dated products, $8.5 billion in cash management and $32.5 billion in advisory assignments.
Investors responded positively to BlackRock’s earnings announcement, boosting its New York Stock Exchange-traded shares 23.9% to $202.94 a share on Thursday. Its shares closed at $178.9 each on Wednesday.
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