The following is a summary of the Power Corporation of Canada (PWCDF) Q4 2023 Earnings Call Transcript:
Financial Performance:
Power Corporation's Q4 2023 adjusted net earnings from continuing operations increased to $579 million from $395 million in Q4 2022. Per share earnings rose to $0.89 compared to $0.59 in Q4 2022. Adjusted net asset value per share was $53.53 at year-end, compared to $48.26 at the end of Q3 2023.
The company's quarterly dividend increased by 7.1% to $0.5625 per share.
The company reported fair value gains primarily in portage and Private Equity but did not disclose exact figures.
The company maintains $0.9 billion in cash, slightly above the minimum level they prefer to maintain.
Business Progress:
The acquisition of Rockefeller by IGM Financial and the sale of Putnam to Franklin were significant transactions. The repositioning of businesses and the improvement in market communications were strategic initiatives undertaken by the company.
Great-West Life showed robust earnings growth, primarily driven by U.S. business Empower, with the prospect of growth continuing into 2024.
Power Corporation has adopted medium-term financial objectives and adjusted its segmentation. The company experienced growth in its investment platforms without additional seed capital from Power, indicating the effectiveness of its strategy.
Power Corporation is using M&A to drive growth and expand into new markets. Significant progress was made with its Sagard unit, notching up several transactions to enhance scale and growth.
Power Corporation is planning to continue buying back shares in the market, financed by standalone business sales or capital generated from their positions in the strategies that they have. The firm's investment arm, Sagard, has been scaling up to a current AUM of $15 billion, expected to generate more value and future earnings.
The company is also focused on harvesting value from its seed capital pool to invest in new funds and buy back shares.
More details: POWER CORP OF CANADA IR
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