AMP reported a 2.5% decline in revenue to AU$1.38b and a 6.7% drop in net income to AU$98m in the first half of 2025. The profit margin decreased to 7.1%, driven by lower revenue. EPS was AU$0.039, in line with 1H 2024. Revenue is expected to fall by 14% per annum over the next 3 years, compared to a 7.2% decline forecast for the Diversified Financial industry in Australia.
AMP Limited (ASX: AMP) has released its first half 2025 financial results, revealing a 2.5% decline in revenue to AU$1.38 billion and a 6.7% drop in net income to AU$98 million. The company's profit margin decreased to 7.1%, primarily due to lower revenue, while earnings per share (EPS) remained at AU$0.039, unchanged from the same period last year [1].
Looking ahead, AMP expects revenue to fall by 14% per annum over the next three years, a more significant decline than the 7.2% forecast for the Diversified Financial industry in Australia [1]. The company's shares have risen by 15% from a week ago, reflecting investor sentiment despite the challenging financial results [1].
Despite the revenue decline, AMP's EPS remained in line with expectations, indicating that the company's cost management strategies may have cushioned the impact of lower revenue. However, the significant decline in net income and profit margin suggests that the company is facing increased pressure on its profitability [1].
The results also highlight the broader industry trends, with the Australian Diversified Financial industry expected to see a 7.2% decline in revenue over the next three years [1]. This trend is likely influenced by various factors, including economic uncertainty and regulatory changes.
Investors should closely monitor AMP's future results and any updates on its strategies to manage the expected revenue decline and maintain profitability. The company's ability to adapt to these challenges will be crucial for its long-term performance.
References:
[1] https://ca.finance.yahoo.com/news/amp-first-half-2025-earnings-203015261.html
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