Capital management company Talkative reports an operating profit of 2.4 million euros on a turnover of 11.9 million euros from April to June.
At the same time last year, the company made an operating profit of 5.4 million euros on a turnover of 11.9 million euros. Consequently, both turnover and profit decreased from the comparison period.
Analysis company Inderes expected an operating profit of 4.5 million euros from the company on a turnover of 13.4 million euros. Taaleri’s result therefore also fell short of Inderes’ expectations.
Taaleri’s earnings per share fell to EUR 0.00 from last year’s EUR 3.94. Inderes expected it to be 0.11 euros.
The company does not publish short-term guidance.
The decrease in turnover and profit was mainly influenced by the decrease in the fair values of investments, which was expected due to the generally weak development of the capital market.
According to the company, the reason behind the decrease in fair values was especially the rise in interest rates, which has had a negative impact on the insurance company it owns Warranty to the valuations of the investment portfolio.
The rise of capital funds continues
Managing director by Peter Ramsay according to Taaleri, the quarter went operationally according to plans, although the decline in investment values weighed on the numbers.
Continuing income decreased by six percent to EUR 9.6 million, which, according to Ramsay, was due to the closure of the Taaleri SolarWind II fund in the comparison period.
The capital funds segment’s assets under management and turnover increased, but the operating profit decreased due to the ramp-up of new funds.
However, Ramsay believes that the company’s funds focused on renewable energy, real estate and bio-industry will be supported by the latest twists in geopolitics.
“Our strategy works well even in the current situation. Europe’s effort to break away from Russian gas, oil and coal will increase the demand for renewable energy and bio-industrial products, which will support our private equity fund business in the long term,” he says in the company’s press release.
Insurance company Garantia’s net income from insurance operations decreased, even though sales of guarantee insurance increased.
“The combined expense ratio, which describes the profitability of insurance operations, was excellent again, 31.0 percent. Garantia’s investment result continued to suffer especially from the rise in interest rates and changes in risk premiums, but most of the investment losses were unrealized fair value changes,” says Ramsay.
In addition, Taaleri’s result was significantly affected by cleaning up the balance sheet. The company has tried to get rid of investments that are irrelevant to the strategy.
“During the second quarter, we recorded an additional purchase price of EUR 6.7 million from what happened in 2016 Finsilva– from the sale of ownership. In addition, we said that we would sell our shares from Ficolo Oy and we break away Taaleri from Datacenter Ky. The deal was completed after the review period in July, and Taaleri will record a total of EUR 14 million in revenue from the deal in the third quarter.”