Q1 2025 Power Corporation of Canada Earnings Call Transcript
Key Points
- Power Corporation of Canada (PWCDF) reported a solid start to 2025 with Q1 adjusted net earnings from continuing operations at $787 million, up 11% from the previous year.
- The company's NAV per share increased by 14% compared to the end of 2024, driven by strong share price performance at Great-West Life.
- Great-West Life delivered strong quarterly base earnings of over $1 billion for the fourth consecutive quarter, with double-digit growth in its retirement and wealth businesses.
- IGM Financial reported record first-quarter adjusted EPS, driven by record AUM and strong net inflows at IG Wealth and McKenzie.
- Power Corporation of Canada (PWCDF) continues to return capital to shareholders, with $135 million in share buybacks in Q1 and a quarterly dividend consistent with the previous quarter, up 9% year over year.
- GBL's contribution to Power's adjusted net earnings declined year over year due to the absence of prior year fair value gains.
- The company's NAV per share experienced volatility post-quarter end, reflecting share price fluctuations.
- The increase in corporate operations and other line was driven by operating expenses, including a one-time adjustment related to equity-based compensation.
- Power Corporation of Canada (PWCDF) faces challenges in scaling its alternative asset management platforms, Segard and Power Sustainable, which are still relatively small compared to larger players.
- There is ongoing uncertainty in the market environment, which could impact the company's ability to execute its value creation strategy effectively.
Good morning ladies and gentlemen, and welcome to the Power Corporation 1st quarter 2025 earnings conference call.(operator instructions). I would now like to turn the conference over to Mr. Stephen Huang, head of investor relations for Power Corporation. Please go ahead, sir.
Thank you, operator. Good morning, everyone, and thank you for joining the call to discuss our first quarter financial results. Before we begin, please note that the live webcast link and materials for this call are posted under the shareholder reports tab on our website at powercorporation.com.
Please turn to slide 2.
I would like to draw your attention to the cautionary note regarding the use of forward-looking statements which form part of today's remarks. Please also refer to slide 3 for a note on the use of non-IFRS financial measures, other measures, and clarifications on adjusted net asset value.
To discuss our results today, joining us our President and CEO Jeffrey Orr and our EVP
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