Q3 2024 Power Corporation of Canada Earnings Call Transcript
Key Points
- Power Corporation of Canada (PWCDF) reported strong earnings growth from its main operating businesses, Great West Life and IgM Financial, with both achieving a 12% increase in earnings per share year over year.
- The company's net asset value (NAV) increased by 15% during the quarter, driven by strong performance across its portfolio, including significant contributions from Great West Life, IgM Financial, and Well Simple.
- Power Corporation of Canada (PWCDF) declared a quarterly dividend of 56.25 cents per share, maintaining its commitment to returning capital to shareholders.
- The company successfully monetized its standalone businesses, including the sale of Peak, which is expected to generate a gain of almost $200 million USD upon closing.
- Well Simple continues to expand its client base and product offerings, contributing to a 46% increase in its valuation during the quarter.
- Adjusted net earnings from continuing operations decreased to $542 million compared to $1 billion in the same quarter last year, partly due to non-recurring items.
- Power Sustainable reported fee-related losses and acquisition costs, impacting overall financial results.
- The company faced non-cash impairment charges at LMPG and Lion, affecting the standalone businesses' contribution to the overall financial performance.
- Despite strong NAV growth, the company's NAV discount remains around 23-24%, indicating a potential undervaluation in the market.
- Mackenzie, part of IgM Financial, is still experiencing negative net flows, although there has been some improvement in its net situation.
Good morning, ladies and gentlemen and welcome to the Power Corporation third quarter, 2024 earnings conference call at this time. All lines are in listen-only mode following the presentation, we will conduct a question and answer session.
Analysts who wish to join the question queue may press star then one at any point throughout the call.
If anyone has any difficulties hearing the conference, please press star then zero for operator assistance at any time.
I would like to remind everyone that this call is being recorded on Wednesday, November 13th, 2024.
I would now like to turn the conference over to Mr Jeffrey Orr, President and Chief Executive Officer of Power Corporation. Please go ahead, sir.
Thank you operator and welcome to everyone. Thanks for joining us this morning for our results call with me is Jake Lawrence who is the EVP and CFO of Power Corporation and we'll walk through the presentation and open it up for questions.
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