Janus Capital Group Inc. said its third-quarter earnings fell 51 percent mostly on higher costs, including a big debt-extinguishment charge, that masked underlying revenue growth.
The asset manager said its complex-wide assets totaled $185 billion as of Sept. 30, compared with $192 billion as of June 30, a decline that included net market depreciation of $11 billion and long-term net outflows of $3.3 billion.
The third quarter included the largest percentage declines for U.S. stock indexes and the most volatility since 2011 amid concerns about the pace of growth in China and elsewhere around the globe.
The latest period also included investment losses of $7.2 million, while the year-earlier period included $1.3 million of investment gains.
The Denver-based asset manager, home to famed bond investor Bill Gross who joined the firm after departing Pacific Investment Management Co. last fall, reported a profit of $19.9 million, or 10 cents a share, down from $40.9 million, or 22 cents a share, a year earlier. The latest period included debt-extinguishment losses of $36.3 million. Excluding such one-time items, per-share earnings were 22 cents.
Revenue increased 16 percent to 273.8 million. Investment management fees rose 8.3 percent
Analysts polled by Thomson Reuters expected per-share profit of 23 cents and revenue of $268 million.
Total operating expenses increased 15 percent.
