Canadian international management and holding company Power Corp (TSE: POW) third-quarter net profit grew by 40% to C$505 million compared to a similar period last year. The company has attributed the growth to shareholders.
The company’s financial results for the third quarter noted that its share price grew by 75% during the quarter. In a similar period, last year, the share earn rose by 84%. Notably, in February, the company underwent a reorganization the eliminated the dual holding model.
The corporation expects significant near-term cost reductions of approximately $50 million per year within two years with the reorganization. It will eliminate duplicative public company-related expenses and rationalizing other general and administrative expenses.
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Power Corp which also has a stake in online automated investment company Wealthsimple saw its non-controlling interests drop to C$971 million from C$898 million.
The company’s adjusted profits grew by 65% per share to stand at a cumulative figure of C$438 million from C$308 million.
Power Corp Q3 revenue drops
General revenue dropped by 4.8% to C$14.68 billion from C$15.42 billion compared to a similar period last year.
The Board of Directors also declared a quarterly dividend of 44.75 CAD cents per share on the Participating Preferred Shares and the Subordinate voting shares of the corporation, payable February 1, 2021.
The company noted that the coronavirus pandemic had impacted it just like other players in the industry. However, it utilized its existing risk management framework. As per company’s statement:
“The Corporation is managing the risks associated with the COVID-19 pandemic utilizing its existing risk management framework. At Power Corporation and its group companies, the focus has continued to be on managing the safety and well-being of its people, maintaining operational effectiveness, ensuring that the group can serve its customers, assessing impacts on earnings, liquidity and capital, planning for different potential scenarios and engaging with stakeholders.”
Orgnanization chart
Power Corp runs the Power Financial and with majority stakes in Great-West Lifeco, IGM Financial, and Wealthsimple Financial Corp as well as a minority stake in Pargesa Holding.
Please note: C$ reffers to Canadian Dollar (CAD).
