10-QPeriod: Q1 FY2019

Blackstone Inc. Quarterly Report for Q1 Ended Mar 31, 2019

Filed May 9, 2019For Securities:BX

Summary

Blackstone Inc. (BX) reported its first quarter 2019 financial results, showcasing robust growth and strong performance. Total revenues increased by 14% year-over-year to $2.0 billion, driven by a significant 9% rise in Investment Income and a 11% increase in Management and Advisory Fees, Net. This revenue growth was supported by strong performance across its Private Equity and Real Estate segments. Despite a 6% increase in total expenses, primarily due to higher compensation and administrative costs, Blackstone's Net Income attributable to The Blackstone Group L.P. surged by 31% to $481.3 million. This performance reflects the company's ability to generate value for its investors and manage its operations effectively amidst a generally positive market environment characterized by a rebound in global equity and credit markets.

Financial Highlights

35 data points
Beta

Revenue

$2.02B

Net Income

$481.30M

23.8% Net Margin

EPS (Diluted)

$0.71

Total Assets

$29.87B

Cash & Equivalents

$1.57B

Free Cash Flow

$111.67M

Financial Statements
Beta
Revenue$2.02B
Operating Expenses$1.04B
Interest Expense$42.00M
Net Income$481.30M
EPS (Basic)$0.71
EPS (Diluted)$0.71
Shares Outstanding (Basic)674.51M
Shares Outstanding (Diluted)1.20B

Key Highlights

  • 1Total revenues grew 14% year-over-year to $2.0 billion, indicating strong top-line performance.
  • 2Investment Income increased by 9%, driven by positive performance in Real Estate and Credit segments.
  • 3Management and Advisory Fees, Net, rose by 11%, reflecting growth in Fee-Earning Assets Under Management, particularly in Private Equity and Real Estate.
  • 4Net Income attributable to The Blackstone Group L.P. increased significantly by 31% to $481.3 million.
  • 5Fee Related Earnings increased by 12% to $374.5 million, demonstrating consistent recurring revenue generation.
  • 6Total Assets Under Management grew by 8% to $511.8 billion, showing substantial growth in capital managed.
  • 7Blackstone announced its intention to convert from a limited partnership to a Delaware corporation, aiming to broaden its investor base and simplify tax reporting.

Frequently Asked Questions

Blackstone reported total revenues of $2.02 billion for the three months ended March 31, 2019, an increase of 14% compared to $1.77 billion for the same period in 2018. This growth was primarily driven by increases in Investment Income and Management and Advisory Fees, Net.

Blackstone's Net Income attributable to The Blackstone Group L.P. increased by 31% to $481.3 million for the three months ended March 31, 2019, compared to $367.9 million in the prior year's first quarter. This significant improvement in profitability was driven by strong revenue growth and effective cost management.

Blackstone announced its intention to convert from a Delaware limited partnership to a Delaware corporation. This conversion is expected to make it easier for domestic and international investors to own Blackstone stock, potentially expanding its investor base and simplifying tax reporting by eliminating Schedule K-1s. The company believes this move will drive greater value for shareholders over time.

Total Assets Under Management grew by 8% to $511.8 billion as of March 31, 2019, compared to $472.2 billion as of December 31, 2018. This growth was driven by inflows and market appreciation across its segments, particularly in Private Equity and Credit.