Blackstone net income more than triples
Blackstone Group (NYSE: BX) said on Monday quarterly net income more than tripled -- boosted by merger and real estate deals -- but revenue at the private equity powerhouse fell below analysts' estimates in its first earnings report as a publicly traded company.
Blackstone Group said net income was $774.4 million in the second quarter, up from $224.1 million in the year-ago period.
A symbol of American super wealth amid a global mergers and acquisitions boom, Blackstone raised net proceeds of about $7.5 billion from its initial public offering in late June. But deal activity has slowed considerably since Blackstone's stock-market debut.
Blackstone Chairman Stephen Schwarzman said challenging financial conditions that started in the last week of the second quarter continue to weigh on the company. He cited turmoil in the U.S. housing market, stalled leveraged buyouts of corporations and escalating defaults with risky subprime mortgages.
Blackstone's revenue surged to $975.3 million from $324.6 million. Analysts, on average, looked for revenue of $991.54 million, according to Reuters Estimates.
Corporate private equity revenue increased to $426.1 million from $125.6 million in the year-earlier period. Real estate revenue increased to $320.2 million from $92 million.
(Reporting by Tim McLaughlin)
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