Summary
Apollo Global Management, Inc. (APO) reported its first quarter 2022 results, marked by the significant consolidation of Athene following their merger on January 1, 2022. This merger substantially altered the company's financial statements, leading to a reported net loss attributable to common stockholders of $870 million, or $(1.50) per diluted share, a notable shift from the net income of $679 million, or $2.81 per diluted share, in the prior year's comparable quarter. The reported loss is largely influenced by $4.2 billion in investment-related losses and a substantial increase in expenses related to the Retirement Services segment. Despite the net loss, the Asset Management segment showed resilience with Fee Related Earnings (FRE) increasing by 2.8% year-over-year to $310.0 million, driven by growth in management and advisory fees. Total Assets Under Management (AUM) grew to $512.8 billion. Investors should note the significant impact of Athene's integration, the prevailing market volatility affecting investment income, and the substantial equity-based compensation expenses that contributed to the net loss.
Financial Highlights
35 data points| Revenue | $862.00M |
| Operating Expenses | $2.78B |
| Interest Expense | $56.00M |
| Net Income | -$401.00M |
| EPS (Basic) | $-0.70 |
| EPS (Diluted) | $-0.70 |
| Shares Outstanding (Basic) | 586.50M |
| Shares Outstanding (Diluted) | 586.50M |
Key Highlights
- 1Apollo Global Management reported a net loss attributable to common stockholders of $870 million for Q1 2022, a significant decline from a net income of $679 million in Q1 2021, primarily due to merger-related integration costs and investment-related losses.
- 2The merger with Athene, effective January 1, 2022, led to a substantial increase in total assets to $261.6 billion and total liabilities to $241.3 billion, reflecting the consolidation of Athene's operations.
- 3Total Revenues decreased by 61.9% to $875 million in Q1 2022 from $2.3 billion in Q1 2021. This was largely driven by a 60.6% decrease in Investment Income within the Asset Management segment, impacted by market volatility.
- 4Fee Related Earnings (FRE) for the Asset Management segment increased by 2.8% to $310.0 million, reflecting growth in management and advisory fees, despite an overall decline in Asset Management revenues.
- 5The Retirement Services segment reported revenues of $(234) million for Q1 2022, primarily impacted by $4.2 billion in investment-related losses, largely due to unfavorable changes in the fair value of reinsurance assets, mortgage loans, and hedging derivatives.
- 6Total Expenses increased by 231.8% to $3.39 billion in Q1 2022, heavily influenced by the inclusion of Retirement Services expenses, which were $2.48 billion, compared to zero in the prior year's quarter.
- 7Equity-based compensation expense significantly increased to $156 million from $56 million in the prior year's quarter, contributing to the higher operating expenses.