August 6, 2009 / 10:47 AM / 9 years ago

UPDATE 1-GMP Capital Q2 profit falls, misses market expectations

* Q2 EPS C$0.12 vs C$0.25 yr-ago

* Revenue rises 13 pct on investment banking gains

* Maintains quarterly dividend of C$0.05 a share

Aug 6 (Reuters) - GMP Capital Inc (GMP.TO) reported a 49 percent drop in quarterly profit, missing market expectations, due to charges tied to the conversion from an income trust to a corporation.

The Toronto-based investment dealer said second-quarter earnings fell to C$8.1 million ($7.56 million), or 12 Canadian cents per basic share, in the second quarter ended June 30, from C$15.7 million, or 25 Canadian cents per basic share, in the same quarter a year ago.

Analysts had expected per-share earnings of 22 Canadian cents, according to Reuters Estimates.

Quarterly revenue rose 13 percent to $100.8 million helped by higher investment banking revenue and gains in principal activities.

GMP said second-quarter results included adjustments to the provision for income taxes to reflect the impact of the conversion from an income trust to a corporation, which reduced net income by C$8.9 million, or C$0.15 per basic share.

GMP announced last month it was merging its wealth management division with Richardson Partners Financial Ltd to create what it hopes will become Canada’s preeminent independent investment company.

GMP shares closed at C$12.63 Wednesday in the Toronto Stock Exchange. ($1=1.071 Canadian Dollar) (Reporting by Sakthi Prasad in Bangalore; Editing by Ratul Ray Chaudhuri)

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