Challenger Limited (ASX: CGF) had come forward and made an announcement related to the half-year results ending December 31, 2018 with the help of the press release. As per the release dated February 12, 2019, the company stated that its performance got impacted by the challenging operating conditions. The company stated that its total assets under management amounted to $78.4 billion which reflects the rise of 2% on PCP (or prior corresponding period). Challenger Limited’s normalized net profit before tax amounted to $270 million which reflects the fall of 2% as compared to the prior corresponding period.
The release issued by the company also contained the viewpoints of the company’s top management. The CEO (or Chief Executive Officer) of Challenger Limited stated that even though the results demonstrate challenging operating environment, he happens to be confident that the business is in the robust position to tackle the present market as well as tap the opportunities for the growth in the future.
Challenger Limited had stated that, with regards to the Funds management business, the favourable momentum in the net income was supported by the increased average funds under management got partially offset by the lesser performance fees. With regards to the Funds management business, the company stated that the net flows were -$1 billion and were weighed by the large Australian institutional fixed income mandate redemption. The release issued by Challenger Limited had stated that the Funds Management was weighed by the market conditions which had resulted in the lesser performance fees. However, the company also added that long-term growth with respect to the Funds Management is supported by robust fund performance. The company stated that its product offering happens to be appealing for the retirees in the present environment as they have been seeking guaranteed income as well as longevity protection during the times of volatile markets as well as political uncertainty. The company stated that they have been expanding the distribution reach. In the release, the company had given the information about the outlook. It stated that there are expectations that normalized net profit before tax for FY 2019 would be in the range of $545 million-$565 million.
Challenger Limited also threw light on the dividend payout ratio. The company has been targeting a dividend payout ratio between 45%-50% of the normalized net profit after tax.
We would now be looking at how the stock of Challenger Limited has performed today and how it has been performed in the past. Today (i.e., February 12, 2019), the stock of Challenger Limited closed the session in green as it witnessed the rise of A$0.090 per share or 1.149% and wrapped up the session at A$7.920 per share. The market capitalization of Challenger Limited stood at ~$4.79 billion, and the stock price is trading towards the lower level.
Talking about the past performance, the company’s stock had given -37.11% in the span of previous six months while, in the time frame of three months, the stock had posted the return of -20.43%.
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