Macquarie profits jump 60 percent

[tonx]

SYDNEY, Australia (Reuters) -- Macquarie Bank, Australia's top listed investment bank, said on Tuesday its full-year profit jumped a record 60 percent, boosted by strong deal flow and robust equity markets.

It did not give a specific earnings growth forecast but said it had enjoyed a strong start to the new financial year.

The bank also plans to raise slightly more than A$700 million ($583 million) to fund international growth, a source told Reuters earlier on Tuesday. Its shares are on a trading halt pending details of the capital raising.

"We are planning for continued strong growth with international income expected to continue to make an increasingly important contribution," Chief Executive Office Allan Moss said in a statement on Tuesday.

Macquarie, part of a consortium which earlier this month failed in a takeover bid for Qantas Airways, earned A$1.463 billion ($1.219 billion) in net profit for fiscal year ended March.

Eight analysts on average had forecast profit of A$1.394 billion ($1.16 billion). Estimates ranged from A$1.31-A$1.430 billion ($1.09-$1.19 billion).

International income rose to A$3.5 billion ($2.91 billion), a jump of 70 percent over the last year, with offshore staff up 39 percent to 3,501.

The bank, which manages A$197 billion ($164 billion) in assets globally, buys toll roads, airports, power and water utilities and bundles them into listed and unlisted funds and charges fee for managing them.

Macquarie was Australia's second-biggest corporate advisor in 2006 having helped in deals worth about $38 billion. But it has slipped to fifth this year, according to data compiler Dealogic.

In February, the bank flagged a strong increase in fiscal 2007 earnings, boosted by booming stock markets and a surge in private-equity driven takeovers in Australia over the past 12 months.

But it is facing growing competition from smaller rivals such as Babcock & Brown, which last week won approval to buy Australia's largest energy infrastructure firm Alinta, beating out a bid from Macquarie.

Despite the recent setbacks, Macquarie has announced deals worth about A$20 billion ($16.64 billion) in 2007, according to ABN AMRO, and also raised $10.3 billion for an infrastructure fund, emphasizing its desire to keep the momentum going.

Shares in Macquarie Bank have risen 13.9 percent so far in 2007, outpacing a 11.9 percent rise in the benchmark S&P/ASX 200 Index in the same period.

http://edition.cnn.com/2007/BUSINESS/05/14/macquarie.profits.reut/

 

[Tiger]

Not bloody surprised considering how much they charge for everything in their AMF centres.......

 

[Easy Tiger]

Just think what $1 million out of that $1.4 billion profit could do for Australian bowling...............................................











Why doesn't Macquarie sponsor our sport considering they bloody well own it.

 

[Brenton_Davy]

The bank also plans to raise slightly more than A$700 million ($583 million) to fund international growth, a source told Reuters earlier on Tuesday. Its shares are on a trading halt pending details of the capital raising.

I think that answers your question right there. Remember too that such a "sponsorship" would have to pass at a shareholders meeting and I doubt that would happen.

 

[Easy Tiger]

This is true, though if it was classified as just investing capital back into an existing subsiduary (which it could be as bowling is a part of its business), then it shouldn't need clarification or passing by shareholders.

The sad part is that it won't happen, Macquarie comes with a reputation.

 

[tonx]

The sad part is that it won't happen, Macquarie comes with a reputation.

Over Paying their executive board?

The bonus this year for the main man was only something like $33million....

Only......

 

[Easy Tiger]

I'm guessing the shareholders approved that too.. (who in their right mind would approve a payout to one executive of $33 million?? I don't care what the job entails, no-one in charge of a company with shareholders deserves that kind of payout).

Meanwhile, at $10 per game, the sport dies a little more each day as people cannot afford to bowl.

 

[Craig Ryan]

Interesting article - I'll put my business cap on.

For what its worth less then 2% of the Macquarie Group profit came from Macquarie Leisure Trust Group (MLE) - the entity that controls the bowling sector. I can also highlight that Tenpin Bowling makes up approximately 20% of MLE's revenue stream.

Quite frankly everyone needs to look at the big picture - Tenpin Bowling is a VERY SMALL piece in the massive empire that is Macquarie Group.

Macquarie as a whole has some exciting, albeit challenging times ahead. The push from rivals to cut into its market share leaves the Group vulnerable.

One thing is certain, tipping anything in excess of $5m into Tenpin Bowling is a BAD move. It may appear small fry in comparison to the empires $1.4bn profit - but remember MLE has announced a $20m profit. A majority of MLE's earnings come from its theme park. - where it also faces stiff competition. Of the big four themeparks on the coast it owns only Dreamworld. Ask yourself this question, if you were running MLE (not the group) would you be looking to try and improve your position in your large revenue area (theme parks) or pour money into an asset that is to be honest never going to be anything more then a small revenue producer. I know where my money would be heading...