eQ Plc half year financial report
5 August 2025 at 8:00 AM
January to June 2025 in brief
- During the period under review, the Group's net revenue totalled EUR 28.3 million (EUR 34.2 million from 1 Jan. to 30 June 2024). The Group's net fee and commission income was EUR 29.4 million (EUR 33.2 million).
- The Group's operating profit fell by 35% to EUR 11.8 million (EUR 18.1 million).
- The Group's profit was EUR 9.3 million (EUR 14.3 million).
- The consolidated earnings per share were EUR 0.22 (EUR 0.35).
- The net revenue of the Asset Management segment decreased by 5% to EUR 28.6 million (EUR 30.3 million) and the operating profit by 13% to EUR 15.2 million (EUR 17.4 million). The management fees of the Asset Management segment fell by 4% to EUR 26.7 million (EUR 27.9 million) and the performance fees fell by 19% to EUR 2.2 million (EUR 2.7 million). During the review period, the assets managed by eQ Asset Management grew to EUR 13.5 billion (EUR 13.4 billion on 31 Dec. 2024).
- The net revenue of the Corporate Finance segment was EUR 0.8 million (EUR 2.9 million) and the operating profit was EUR -0.9 million (EUR 1.0 million). It is typical of corporate finance business that success fees have a considerable impact on invoicing, which is why the segment's results may vary considerably.
- The operating profit of the Investments segment was EUR -1.3 million (EUR 0.5 million). Operating profit was negatively affected by changes in the value of residential funds and exchange rate fluctuations in USD-denominated investments.
- The net cash flow from the Group's own private equity and real estate fund investment operations was EUR -0.7 million (EUR -0.1 million).
- The Board of Directors of eQ Plc appointed Jouko Pölönen as the company's new Chief Executive Officer. Pölönen will begin his post on September 1, 2025.
April to June 2025 in brief
- In the second quarter, the Group's net revenue totalled EUR 14.3 million (EUR 17.7 million from 1 April to 30 June 2024). The Group's net fee and commission income was EUR 14.9 million (EUR 17.2 million).
- The Group's operating profit fell by 36% to EUR 6.0 million (EUR 9.3 million). Operating expenses include EUR 0.5 million in non-recurring expenses related to strategic planning and market research for the asset management business.
- The Group's profit was EUR 4.7 million (EUR 7.4 million).
- The consolidated earnings per share were EUR 0.11 (EUR 0.18).
| Key ratios | 1-6/25 | 1-6/24 | Change | 4-6/25 | 4-6/24 | Change | 1-12/24 |
| Net revenue, Group, MEUR | 28.3 | 34.2 | -17 % | 14.3 | 17.7 | -19 % | 65.6 |
| Net revenue, Asset Management, MEUR | 28.6 | 30.3 | -5 % | 14.2 | 15.1 | -6 % | 58.5 |
| Net revenue, Corporate Finance, MEUR | 0.8 | 2.9 | -72 % | 0.8 | 2.1 | -64 % | 5.3 |
| Net revenue, Investments, MEUR | -1.3 | 0.5 | -335 % | -0.7 | 0.3 | -307 % | 1.1 |
| Group administration and eliminations | |||||||
| Net revenue, MEUR | 0.2 | 0.5 | 0.0 | 0.2 | 0.8 | ||
| Operating profit, Group, MEUR | 11.8 | 18.1 | -35 % | 6.0 | 9.3 | -36 % | 34.5 |
| Operating profit, Asset Management, MEUR | 15.2 | 17.4 | -13 % | 7.3 | 8.6 | -15 % | 33.7 |
| Operating profit, Corporate Finance, MEUR | -0.9 | 1.0 | -192 % | -0.1 | 0.9 | -106 % | 1.5 |
| Operating profit, Investments, MEUR | -1.3 | 0.5 | -335 % | -0.7 | 0.3 | -307 % | 1.1 |
| Operating profit, Group administration, MEUR | -1.2 | -0.9 | -0.6 | -0.5 | -1.8 | ||
| Profit for the period, MEUR | 9.3 | 14.3 | -35 % | 4.7 | 7.4 | -36 % | 27.4 |
| Key ratios | 1-6/25 | 1-6/24 | Change | 4-6/25 | 4-6/24 | Change | 1-12/24 |
| Earnings per share, EUR | 0.22 | 0.35 | -36 % | 0.11 | 0.18 | -36 % | 0.66 |
| Equity per share, EUR | 1.35 | 1.45 | -7 % | 1.35 | 1.45 | -7 % | 1.77 |
| Cost/income ratio, Group, % | 58.3 | 47.1 | 24 % | 58.3 | 47.6 | 22 % | 47.4 |
| Liquid assets, MEUR | 14.3 | 19.8 | -28 % | 14.3 | 19.8 | -28 % | 17.0 |
| Private equity and real estate fund investments, MEUR | 16.5 | 17.3 | -5 % | 16.5 | 17.3 | -5 % | 17.0 |
| Interest-bearing loans, MEUR | 0.0 | 0.0 | 0% | 0.0 | 0.0 | 0% | 0.0 |
| Assets under management excluding reporting services, EUR billion | 10.0 | 10.2 | -2 % | 10.0 | 10.2 | -2 % | 10.4 |
| Assets under management, EUR billion | 13.5 | 13.2 | 2 % | 13.5 | 13.2 | 2 % | 13.4 |
Acting CEO Janne Larma
Market volatility was quite high in the second quarter of the year. The tariffs unilaterally announced by the United States created significant uncertainty among businesses and consumers alike. The conflict in the Middle East also escalated, which had an impact on the energy sector, among other things. Global geopolitical tensions also continued.
Despite all this uncertainty, the capital markets once again demonstrated their strength. Several stock markets rebounded after the decline and rose to record highs or close to them. Interest rate spreads narrowed, and the ECB continued its interest rate cuts in Europe. The US dollar weakened against the euro by approximately 11 per cent during the review period.
eQ's operating profit for the review period was EUR 11.8 million
The net revenue of the Group during the period under review was EUR 28.3 million and the operating profit was EUR 11.8 million. Net revenue fell by 17 per cent and operating profit by 35 per cent from the previous year. Both Advium and Investments segments had negative results, which had a significant impact on the decline in earnings. The weakening of the US dollar had a negative impact on the result of the Investments segment and on the management fees of Private Equity asset management for USD-denominated funds.
During the period under review, the Board of Directors of eQ Plc appointed Jouko Pölönen as the company's new Chief Executive Officer. Pölönen will begin his post on September 1, 2025.
eQ Asset Management raised over EUR 200 million for closed-end private equity and residential funds
During the review period, we raised USD 178 million for our newest private equity fund, eQ PE XVII US. In addition, we raised EUR 18 million in new capital for the eQ PE SF V secondary market fund, which was established in 2024. We also signed new Private Equity programme fund agreements during the period. The general scarcity of exits from private equity funds continues to hamper sales, but our strong and solid track record of returns enables such large subscriptions. In addition, it can be noted that there are clearly more exits in funds that have invested in small and medium-sized companies, i.e., precisely the segment in which eQ's Private Equity funds invest.
During the review period, we established the eQ Residential III fund, to which two of our previous residential funds were transferred. We raised EUR 37 million in subscriptions for the fund. We will continue fundraising for the eQ PE XVII US, eQ PE SF V, and eQ Residential III funds.
For open-ended real estate funds, the market situation has not changed much. The fall in interest rates is certainly improving the operating conditions in the real estate market, but market activity remains low, and yield requirements have not yet begun to fall. The redemptions of the eQ Community Properties Fund at the end of last year have been paid. eQ Commercial Properties Fund does not yet have the liquidity to pay the redemptions at the moment.
During the period under review, the net revenue of the Asset Management segment fell by 5 per cent to EUR 28.6 million. The decrease in net revenue, EUR 1.6 million, is attributable to lower real estate asset management fees and Private Equity performance fees. Private Equity asset management's management fees increased by 5 per cent from last year. During the review period, eQ Asset Management's operating profit fell by 13 per cent to EUR 15.2 million. The result includes EUR 0.5 million in non-recurring expenses.
Advium suffered from poor market conditions
The number of mergers and acquisitions and real estate transactions in Finland remained very low in the first half of 2025. During the review period Advium acted as advisor in a transaction where Advium's role is not public. During the period under review, Advium's net revenue totalled EUR 0.8 million (EUR 2.9 million). Operating profit was EUR -0.9 million (EUR 1.0 million).
Given the market situation, Advium's order book is at a good level. However, the completion of transactions is largely dependent on the overall capital market situation and its development.
Profit of investments fell
The operating profit of the Investments segment fell from last year and was EUR -1.3 million (EUR 0.5 million). The negative result was caused by changes in the value of investments. The change in value was negatively affected by changes in the value of residential funds and exchange rate fluctuations in USD-denominated investments. The balance sheet value of equity and real estate fund investments at the end of the reporting period was EUR 16.5 million (EUR 17.0 million on 31 December 2024). During the review period, eQ Plc made an investment commitment of USD 1 million to the eQ PE XVII US and EUR 1 million to the Residential III funds. Net cash flow of investments was EUR -0.7 million (EUR -0.1 million).
Outlook
General economic uncertainty and tariff disputes also delayed the recovery of the real estate market. In Finland, the real estate transaction market grew clearly during the second quarter of the year compared to previous quarters. Despite the increase in activity, market liquidity is still at a low level and the real estate market situation is generally still challenging. Yield requirements have remained largely unchanged from the end of last year. Yield requirements have not fallen, even though interest rates have fallen significantly in Europe. The recovery of the real estate market now depends on the development of the Finnish economy and foreign capital. Our assessment is that market activity will increase, and yield requirements will decrease as more foreign capital begins to flow into Finland.
eQ's real estate fund management fees are expected to decrease in 2025 compared to the previous year.
Sales of eQ's Private Equity products has continued to be strong, and we believe that Finnish asset management clients will increase the Private Equity allocations in their portfolios in the coming years. We estimate that eQ's Private Equity fees will increase in 2025 compared to last year. The exit market for private equity funds has been quiet in the first half of the year, but our funds have nevertheless returned capital to investors. A number of private equity products are expected to move into the performance fee phase in 2026.
In terms of equity and fixed income asset management, fee trends are largely dependent on market developments.
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eQ's half year financial report 1 Jan. to 30 June 2025 is enclosed to this release and it is also available on the company website at www.eQ.fi.
eQ Plc
Additional information:
Janne Larma, acting CEO, tel. +358 9 6817 8920
Antti Lyytikäinen, CFO, tel. +358 9 6817 8741
Distribution: Nasdaq Helsinki, www.eQ.fi, media
eQ is a Finnish group that concentrates on asset management and corporate finance business. eQ Asset Management offers a wide range of asset management services (including private equity funds and real estate asset management) for institutions and private individuals. The assets managed by the Group total approximately EUR 13.5 billion. Advium Corporate Finance, which is part of the Group, offers services related to mergers and acquisitions, real estate transactions and equity capital markets. The parent company eQ Plc's shares are listed on Nasdaq Helsinki. More information about the Group is available on our website www.eQ.fi.
