【 10 min FY2020 1st Quarter Earnings 】
FY2020 1st Quarter Earnings Presentation
Unfortunately, SPARX Group's earnings for the first quarter in fiscal year 2020 resulted in an 18.6% year-on-year decline in operating profits and an 8.7% decline in our base earnings.
Base earnings is a measure of our company's ability to generate sustainable and stable earnings .
The Group's AUM increased from 1.1 trillion yen at the end of the last fiscal year to 1.2 trillion yen as of June 30, 2020, representing a 10.7% growth.
Despite this, we experienced a year-on-year decrease in our management fees due to the decline of our AUM for funds that earned higher fees than our average overall management fee, including our Japanese public investment trusts that had contributed to the growth in management fees last fiscal year.
As a result, after deducting commissions, our management fees fell from about 2.3 billion yen in the first quarter last year to about 2.1 billion yen this quarter.
Performance fees also fell from last year's figure of 343 million yen to 162 million yen this year due to a relatively large amount of performance fees earned by our renewable energy strategy in the first quarter of last year.
Taking these results together, this year's first quarter revenue and profits were less than last fiscal year's.
However, as I just said, these results were primarily due to a large amount of performance fees earned in the first quarter of last fiscal year.
I would like to emphasize that this quarter's performance is not representative of what will happen in the remaining quarters and does not reflect the real strength of SPARX today.
With three quarters remaining this fiscal year, we will continue to do our utmost to meet everyone's expectations and believe that we are still on track matching last year's performance.
Our challenge is to be better than last year.