Invesco Reports Mixed Q3 Results with Revenue Growth, Decline in Profitability

Invesco Ltd. reported its financial results for the third quarter and nine months ended September 30, 2024, highlighting a mixed performance in revenue and profitability compared to the previous fiscal period.

For the three months ended September 30, 2024, Invesco's operating revenues increased to $1,515.4 million, a 5.1% rise from $1,442.0 million in the same period of 2023. Investment management fees also saw a notable increase, reaching $1,100.5 million, up 5.7% from $1,041.3 million. However, total operating expenses surged by 16.5% to $1,414.9 million, primarily driven by a significant 30.7% increase in employee compensation expenses, which included a one-time acceleration of $147.6 million due to changes in retirement criteria for long-term awards. This led to a decline in operating income to $100.5 million, down from $227.7 million in the prior year. Net income attributable to Invesco Ltd. for the quarter was $55.0 million, a decrease from $131.4 million in 2023, resulting in diluted earnings per share of $0.12, down from $0.29.

For the nine months ended September 30, 2024, total operating revenues rose to $4,474.0 million, a 4.0% increase from $4,303.0 million in 2023. However, net revenues decreased slightly to $3,243.3 million from $3,264.8 million. Net income attributable to Invesco Ltd. for this period was $328.7 million, down from $408.6 million, with diluted earnings per share at $0.72 compared to $0.89 in the previous year.

Invesco's total assets as of September 30, 2024, were reported at $27,502.6 million, a decrease from $28,933.8 million at the end of 2023. Cash and cash equivalents also fell to $1,044.9 million from $1,469.2 million. Conversely, total investments increased to $1,128.9 million from $919.1 million. The company’s total equity attributable to Invesco Ltd. rose slightly to $14,754.3 million from $14,597.6 million.

Strategically, Invesco experienced net long-term inflows of $16.5 billion in Q3 2024, primarily from ETFs and Index, Fundamental Fixed Income, and Multi-Asset/Other. The company’s total Assets Under Management (AUM) reached $1,795.6 billion, a 4.7% increase from the prior quarter. The firm also repurchased 1.5 million common shares for $25.0 million during the quarter, with plans for continued repurchases in Q4 2024.

Overall, while Invesco saw growth in revenues and AUM, profitability was impacted by rising expenses and a significant one-time compensation charge.