Apollo Global’s Flat Quarterly Earnings Fall Short of Expectations, Reports Reuters

By Echo Wang

NEW YORK – Apollo Global Management announced its second-quarter adjusted net income remained flat, falling short of Wall Street expectations due to a rise in revenue from fees being counterbalanced by a decrease in income from its retirement sector.

The New York-based private equity and corporate credit investor reported adjusted net income of $1.01 billion for the quarter ending in June, nearly matching the figure from the previous year.

This resulted in adjusted net income per share of $1.70, which was below the average analyst estimate of $1.76, based on available data.

Apollo achieved a record $516 million in fee-related earnings during the quarter, marking a 16.7% increase compared to the same period last year, driven by strong performance in asset management.

“We generated record fee-related earnings in the second quarter behind particularly strong momentum in asset management,” said Mark Rowan, Apollo’s Chief Executive.

Despite this, Apollo experienced a 12.5% decline in spread-related earnings, a key performance metric for its Athene retirement services unit, totaling $710 million.

Apollo’s total assets under management grew by approximately 13% year-over-year to $696 billion, with growth balanced between asset management and retirement services. However, it faced $61 billion in outflows and divested $29 billion in assets during the period.

The firm reported an unspent capital reserve of $68 billion and deployed $70 billion in investments, achieving a quarterly record in debt originations at $52 billion. The company announced a dividend payout of 46.25 cents per share.

In early trading, Apollo’s shares dropped by 2.3% to $122.38, giving the alternative asset manager a market capitalization of around $69.6 billion. The stock is up 31% year to date.

In recent weeks, Apollo has engaged in several significant deals, including an agreement to acquire British parcel delivery company Evri for £2.7 billion (approximately $3.5 billion) and a partnership to purchase International Game Technology’s gaming division alongside Everi Holdings for a total of $6.3 billion in an all-cash transaction.

Apollo also made a $700 million investment in Sony Music Group.