GMP Capital posts loss on weak capital markets
(Reuters) - Canadian investment dealer GMP Capital Inc (GMP.TO: Quote) reported a quarterly loss on a sharp fall in investment banking revenue and the company halved its quarterly dividend.
The company, whose stock has lost 52 percent value in the last one year, said its investment banking business has been hit by a weak resources sector.
The global economic recovery has been slower than expected and investment banking and trading activity have been hit the most, Chief Executive Harris Fricker said in a statement.
GMP recorded a net loss attributable to shareholders of C$2.3 million ($2.33 million), or 4 Canadian cents per share, for the first quarter, compared with a year-ago profit of C$22.5 million, or 29 Canadian cents per share.
Revenue fell 43 percent to C$66.1 million.
Capital markets revenue also declined 43 percent to C$58.9 million on weak investment banking, particularly in the mining sector, and lower commission revenues.
Weak capital markets hurt the Toronto-based firm's results for the fourth consecutive quarter.
The company also took a C$4.5 million restructuring charge in the quarter ended March 31 related to management changes.
GMP, which was founded in 1995 and quickly became one of Canada's most successful independent investment dealers, said it cut its quarterly dividend to 5 Canadian cents per share from 10 Canadian cents.
($1 = 0.9867 Canadian dollars)
(Reporting by Reporting By Cameron French in Toronto and Aftab Ahmed in Bangalore; Editing by Joyjeet Das)
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