Janus Capital Group announced Thursday that second-quarter profit fell 80%, to $25.7 million, as the Denver money manager continued to have substantial outflows.
The company said net income fell from $130.2 million the year earlier and revenue declined 3.5%, to $229.3 million.
Assets under management fell 1.1%, to $130.3 billion at June 30, from the end of the first quarter on $2.1 billion of outflows from its long-term funds. Janus had $1.9 billion of outflows in the first quarter.
Steve Scheid, Janus' chairman and chief executive officer, said during a conference call that he expects $2 billion to $3 billion of net outflows in the second half. He said he hopes to increase sales by 8% in the coming 12 months despite plans to cut advertising in the second half from $15 million to between $3 million and $4 million.
He wants to move to a cheaper marketing model that focuses on print advertising and drops television ads, Mr. Scheid said, and will discuss specifics during this quarter about how Janus will accelerate sales while cutting advertising.
