Reuters logo
UPDATE 1-Mediolanum net profit falls 41 pct in first quarter
May 14, 2014 / 4:08 PM / 4 years ago

UPDATE 1-Mediolanum net profit falls 41 pct in first quarter

* Q1 net down 41 pct at 81 million euros

* Total assets up 10 percent to 58.9 bln eur

* To spend 100 mln more on IT, marketing (Adds deputy chairman comments on investments, 2014 inflows)

MILAN, May 14 (Reuters) - Italian asset manager Mediolanum said its net profit in the first quarter dropped 41 percent on lower performance fees and higher IT and marketing costs.

Deputy Chairman Massimo Doris said on Wednesday the group planned to spend 100 million euros ($137 million) more than last year to improve its technology and acquire new clients, adding the impact of these additional costs would be stronger in the coming quarters.

“Additional costs were only 16 million euros in the first quarter, so their impact will likely increase in the next quarters as we carry on planned investments,” he told Reuters.

Doris confirmed the asset manager would increase net inflows this year in comparison with the 3.3 billion euros posted in 2013, as the group had already exceeded 1 billion euros in net inflows in the first four months of this year.

The performance in the first half of this month was “very strong,” Chief Executive Ennio Doris said on a conference call.

In the first quarter net profit was 81 million euros, while total assets rose 10 percent to 58.9 billion euros, the company said in a statement. ($1 = 0.7296 Euros) (Reporting by Maria Pia Quaglia and Francesca Landini; Editing by David Holmes)

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below