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10-QPeriod: Q2 FY2013

Blackstone Inc. Quarterly Report for Q2 Ended Jun 30, 2013

Filed August 8, 2013For Securities:BX

Summary

Blackstone Inc. (BX) reported a significant increase in financial performance for the six months ended June 30, 2013, compared to the same period in 2012. Total revenues surged by 70% to $2.7 billion, largely driven by a substantial 153% jump in Performance Fees, reaching $1.3 billion, and a 131% increase in Investment Income, totaling $281 million. This strong revenue growth was primarily fueled by robust market appreciation across Blackstone's Private Equity and Real Estate segments, indicating a favorable market environment for the company's investment strategies. Total expenses also rose by 15% to $1.7 billion, primarily due to increased Performance Fee Compensation reflecting the higher performance fee revenues and higher overall compensation and benefits. Despite the rise in expenses, the company saw a significant improvement in profitability, with Net Income Attributable to The Blackstone Group L.P. swinging from a net loss of $(16.6) million in the first half of 2012 to a net income of $378.8 million in the first half of 2013. This substantial turnaround highlights Blackstone's ability to capitalize on market opportunities and generate strong returns for its investors and shareholders.

Financial Statements
Beta
Revenue$1.44B
Operating Expenses$914.76M
Interest Expense$26.96M
Net Income$211.15M
EPS (Basic)$0.36
EPS (Diluted)$0.36
Shares Outstanding (Basic)583.84M
Shares Outstanding (Diluted)586.76M

Key Highlights

  • 1Total Revenues increased significantly by 70% to $2.7 billion for the six months ended June 30, 2013, compared to $1.6 billion for the same period in 2012.
  • 2Performance Fees surged by 153% to $1.3 billion for the six months ended June 30, 2013, driven by strong market appreciation across Private Equity and Real Estate segments.
  • 3Investment Income (Loss) increased by 131% to $281 million for the six months ended June 30, 2013, reflecting positive performance across various funds.
  • 4Net Income Attributable to The Blackstone Group L.P. improved dramatically from a loss of $(16.6) million in H1 2012 to a profit of $378.8 million in H1 2013.
  • 5Total Expenses increased by 15% to $1.7 billion, primarily due to higher Performance Fee Compensation and overall compensation and benefits.
  • 6Fee-Earning Assets Under Management grew by 5% to $176.3 billion by June 30, 2013, indicating continued asset gathering and growth in managed businesses.
  • 7Assets Under Management also saw a 9% increase, reaching $229.6 billion by June 30, 2013, reflecting strong inflows and market appreciation.

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