Wednesday, November 11, 2009

CI Financial Q3 profit falls from year ago

TORONTO — CI Financial Corp. (TSX:CIX), one of Canada's largest wealth-management and mutual fund operators, saw its profit drop precipitously in the third quarter as revenue fell and it booked a loss of $47.3 million related to the sale of its Blackmont division.

CI has agreed to sell the retail brokerage division of Blackmont $93.3 million, and plans to sell the rest of Blackmont's assets within a year.

The company's net income for the quarter - including the impact of the Blackmont sale, was $17.4 million or six cents per share. That compared with a profit of $118.1 million, 42 cents per share a year earlier.

Net earnings from its continuing operations, not including Blackmont, were $66.4 million or 23 cents per share, compared with $123.8 million or 44 cents per share.

The discontinued operations reported a net loss of nearly $49 million, an increase from a $5.6-million loss a year earlier.

Overall revenue fell to $318.7 million for the July-September period, down from $349.8 million in the third quarter of 2008. Management fees fell to $273.5 million from $302.7 million.

Shares in CI were down 17 cents at $19.08 in afternoon trading on the Toronto stock market.

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