How did Janus Henderson (ASX:JHG) and Afterpay (ASX:APT) fare in the September Quarter?

  • October 31, 2020 01:37 AM AEDT
  • Team Kalkine
How did Janus Henderson (ASX:JHG) and Afterpay (ASX:APT) fare in the September Quarter?

Summary

  • Leading BNPL player Afterpay and top global active asset manager company Janus Henderson has have released their September 2020 quarterly results.
  • Janus Henderson delivered solid Q3 FY2020 performance and reported operating revenue of US$156.5 million during the period.
  • In Q1 FY2021, Afterpay delivered a strong performance across all regions with 115% growth in underlying sales.
Gold MTF non-AMP

Post the completion of the September 2020 quarter, many companies have started releasing their quarterly results. Amongst various companies listed on the ASX, we would zero in on the recent business update shared by Janus Henderson and Afterpay, two big players who are known for their services in their respective sectors. Both the companies are in the spotlight post releasing their September 2020 quarter results.

Janus Henderson Group Plc

Janus Henderson Group plc (ASX:JHG) has released its Q3 FY2020 results for the period ended 30 September 2020. Headquartered in London and listed on ASX and NYSE, Janus Henderson Group is a leading global active asset manager that aims to support investors to achieve long-term financial goals via a broad range of investment solutions. It comprises of equities, fixed income, quantitative equities, multi-asset and alternative asset class strategies.

Q3 FY2020 Highlights

During the third quarter, the Company reported around US$358.3 billion in assets under management as on 30 September 2020. AUM increased by 6.4% over the previous quarter.

  • The Company delivered a solid long-term investment performance in Q3.
  • The operating income of the Company increased to US$156.5 million in Q3 FY2020 from US$106.7 million in Q2 FY2020.
  • The adjusted operating income, adjusted for one-time, acquisition and transaction-related costs for the period was US$162.1 million.
  • Adjusted diluted EPS was of US$0.70.
  • JHG announced a dividend of US$0.36 per share. It also completed US$50 million of share buybacks at an average price per share of US$20.48.

A Glance at JHG’s Strategy

Janus Henderson’s strategy is to strengthen its core foundation and at the same time, maximise growth potential. It includes:

  • Produce dependable investment outcomes
  • Excel in client experience
  • Focus and increase operational efficiency
  • Proactive risk and control environment
  • Develop new growth initiatives

Balance Sheet Position by end of Q3 FY2020

Janus Henderson is in a strong liquidity position. However, during the third quarter, the Company reported a considerable drop in the investment securities due to third-party investment, causing deconsolidation of certain seed products.

By the end of 30 September 2020, the total cash and investment securities stood at US$1,376 million as compared to the outstanding debt of US$314 million.

Further, the dividend declared by the Company would be paid on 23 November to the shareholders on record at the close of business on 9 November.

 

Stock Information:

By the end of the day’s trade on 30 October 2020, JHG shares settled at A$34.890, down 2.922% from the previous close. 

INTERESTING READ: ASX300 Janus Henderson (ASX:JHG) Share Price Up ~6% Today, What was the Kicker?

Afterpay Limited

On 28 October 2020, Afterpay Limited (ASX:APT) released its Q1 FY2021 results for the quarter ended 30 September 2020.

Afterpay, a leading company from the Buy Now Pay Later (BNPL) sector, offers an international payments platform that is built to provide for financial wellness of the shoppers. Consumers have the facility to pay back the company in four interest-free instalments for the merchandise bought from an Afterpay registered merchant.    

Q1 FY2021 Highlights:

  • During the period, the Company delivered a strong performance across all regions with underlying sales increased by 115% to A$4.1 billion, up A$1.9 billion as compared to the previous corresponding period.
  • Unaudited Merchant revenue margins remained strong in Q1 FY2021 and continued to perform consistent with what was achieved in FY2020.
  • The trend towards lower unaudited Gross Losses continued during Q1 FY2021 with customer default payment.
  • Active customers increased by 98% globally to 11.2 million. In the US, active customers reached over 6.5 million.
  • 45% of the like for like sales growth was driven by the Millennials, with Gen X & Gen Z driving 25% & 24% growth, respectively.
  • Active merchants increased by 70% to 63.8k, with several major enterprise retailers launching in October 2020.
  • In-store underlying sales in ANZ recovered well during the quarter after a gradual opening of stores and is trending back towards pre-COVID-19 levels at ~20% of total ANZ underlying sales.

DO READ: Why do Millennials love Buy Now, Pay Later?

Collaboration Deal between Afterpay and Westpac Group

In October 2020, Afterpay and Westpac Group signed a Collaboration Deal to enable the launch of Afterpay savings accounts and cash flow tools for clients in Australia. The Afterpay-branded savings & transaction accounts, enabled by WBC’s digital bank-as-a-service technology, will be linked to customers’ current Afterpay accounts. The new offering has the ability to enable new revenue streams over time and increase risk management & processing costs in APT’s current activities.

Stock Information

By the end of the day’s trade on 30 October 2020, APT shares settled at A$96.690, down 2.873% from the previous close. 

 


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