Sprott profit in line as assets under mgmt rises

Wed May 12, 2010 7:57am EDT
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(Reuters) - Fund management firm Sprott Inc posted lower first-quarter earnings that met analysts' expectations even as assets under management rose, driven by the two new funds it launched in the quarter.

For the quarter ended March 31, Sprott earned C$5.9 million ($5.78 million), or 4 Canadian cents a share, which compares with C$7.4 million, or 5 Canadian cents per share, a year ago.

Assets under management totaled C$5.15 billion, up from C$4.72 billion a year ago.

Revenue fell 5 percent to C$25.3 million.

Analysts on average were expecting earnings of 4 Canadian cents a share, on revenue of C$25.1 million, according to Thomson Reuters I/B/E/S.

The company launched the Sprott Physical Gold Trust and the Sprott 2010 Flow-Through Limited Partnership in the quarter, which together added C$400 million to its assets.

Expenses for the quarter rose 4.7 percent to C$16.6 million, mainly from higher compensation and benefits.

Shares of Toronto-based Sprott closed at C$4.0 Tuesday on the Toronto Stock Exchange.

($1=1.021 Canadian Dollar)

(Reporting by Abhiram Nandakumar in Bangalore; Editing by Unnikrishnan Nair)