Summary
Blackstone Inc. (BX) reported its second quarter 2019 financial results, showing a decrease in total revenues compared to the prior year period, largely driven by lower investment income and a significant drop in 'Other Revenue' which was impacted by a prior year sub-advisory relationship conclusion and foreign exchange. Despite the revenue decline, Management and Advisory Fees, Net saw a healthy increase, reflecting growth in fee-earning assets under management across Private Equity, Real Estate, and Credit segments. Expenses decreased year-over-year, mainly due to lower performance allocation compensation, contributing to a sequential improvement in Distributable Earnings for the Private Equity and Hedge Fund Solutions segments. For the six months ended June 30, 2019, revenues also declined year-over-year, with similar drivers to the quarterly results. However, the company saw growth in Fee Related Earnings, supported by higher management fees. The company's Assets Under Management (AUM) and Fee-Earning AUM continued to grow, demonstrating ongoing success in capital raising and deployment. The company also completed a significant corporate conversion, transitioning from a limited partnership to a Delaware corporation, effective July 1, 2019, which is expected to impact its tax structure going forward.
Financial Highlights
35 data points| Revenue | $1.49B |
| Operating Expenses | $862.24M |
| Interest Expense | $43.60M |
| Net Income | $305.79M |
| EPS (Basic) | $0.45 |
| EPS (Diluted) | $0.45 |
| Shares Outstanding (Basic) | 673.66M |
| Shares Outstanding (Diluted) | 673.99M |
Key Highlights
- 1Total Revenues decreased to $1.5 billion for Q2 2019 from $2.6 billion in Q2 2018, primarily due to lower investment income and a significant decrease in 'Other Revenue'.
- 2Management and Advisory Fees, Net increased by 16% to $840.4 million in Q2 2019 from $721.4 million in Q2 2018, driven by growth in fee-earning assets under management across key segments.
- 3Segment Distributable Earnings for the Private Equity segment increased by 40% year-over-year, while Hedge Fund Solutions and Credit segments showed increases of 22% and 73% respectively.
- 4Total Assets Under Management (AUM) grew to $545.5 billion as of June 30, 2019, up from $511.8 billion as of March 31, 2019, indicating continued capital deployment.
- 5The company repurchased approximately 7.0 million common units for $290.9 million in Q2 2019.
- 6Blackstone completed its conversion from a limited partnership to a Delaware corporation on July 1, 2019, which will impact its future tax structure.