Summary
Apollo Global Management, Inc. (APO) reported its 2022 annual results, showcasing a robust asset management segment with $547.6 billion in Assets Under Management (AUM) across its yield, hybrid, and equity strategies. The company also highlighted its significant retirement services business, primarily through its subsidiary Athene, which contributed substantially to overall revenues. Despite market volatility impacting investment income within the asset management segment, Apollo demonstrated resilience with Fee Related Earnings (FRE) growing by 11.3% to $1.4 billion. The retirement services segment saw substantial revenue generation, though it was impacted by investment-related losses, primarily due to rising interest rates. The company's strategic focus on generating spread income through its insurance liabilities and asset management capabilities continues to be a key driver of its retirement services business. Apollo's diversified business model, with its strong AUM base and significant presence in retirement services, positions it to navigate the evolving economic landscape.
Financial Highlights
36 data points| Revenue | $10.97B |
| Operating Expenses | $15.91B |
| Interest Expense | $222.00M |
| Net Income | -$1.96B |
| EPS (Basic) | $-3.43 |
| EPS (Diluted) | $-3.43 |
| Shares Outstanding (Basic) | 584.69M |
| Shares Outstanding (Diluted) | 584.69M |
Key Highlights
- 1Total Assets Under Management (AUM) reached $547.6 billion as of December 31, 2022, with the "Yield" strategy accounting for the largest portion at $392.5 billion.
- 2Fee Related Earnings (FRE) for the Asset Management segment increased by 11.3% to $1.4 billion in 2022, driven by growth in management fees and capital solutions fees.
- 3The Retirement Services segment, operated by Athene, generated $8.2 billion in revenues in 2022, primarily from premiums, net investment income, and product charges, although offset by investment-related losses.
- 4Net income attributable to Apollo Global Management, Inc. common stockholders was a loss of $3.2 billion for 2022, compared to a net income of $1.8 billion in 2021, significantly impacted by investment-related losses in the Retirement Services segment.
- 5Apollo repurchased approximately 2.8 million shares of common stock during the fourth quarter of 2022, reflecting a commitment to capital return to shareholders.
- 6The company declared a quarterly cash dividend of $0.40 per share, indicating a continued focus on shareholder returns.
- 7Total expenses increased significantly by 325.0% to $17.5 billion in 2022, largely due to the inclusion of Retirement Services expenses, which were not present in the prior year period.