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By Alice Uribe
SYDNEY–Insignia Financial’s shares fell early Thursday after the company posted a drop in annual revenue and cut its dividend.
The Australian wealth manager’s shares fell 14% to 2.50 Australian dollars (US$1.62), after earlier hitting a low of A$2.49. It is the worst performer on the ASX 200 so far this session.
“While the result was impacted by lower average funds under management and administration following investment market falls in 4Q FY 2022, as well as strategic repricing decisions, our reduction in operating expenses highlights the benefits of deliberate strategic decisions, and the achievement of our net positive inflow target demonstrates the strength of our go-forward proposition,” said Chief Executive Renato Mota.
Insignia reported a net profit of A$51.4 million for the 12 months to June, up 40% from the previous year. But its revenue was down 9.3% to A$1.95 billion, and its final dividend was 9.3 Australian cents a share, a 21% decline from last year.
UBS analysts noted that Insignia’s final dividend missed expectations.
Insignia’s shares are down around 25% so far this year.
Write to Alice Uribe at [email protected]
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