Waddell & Reed sees 16.7% profit boost

Mutual fund company Waddell & Reed Financial Inc. today reported that its first-quarter net income rose 16.7% and that assets under management reached $50 billion for the first time. The Overland Park, Kan.-based broker-dealer and investment company’s net income grew to $28.7 million, or 35 cents a share, from $24.6 million, or 30 cents a share, a year earlier. Operating revenues of $189 million increased 2% sequential quarterly and 9% compared to last year's first quarter. Net sales through the advisory channel were disappointing, however, the company said, with outflows of $132 million. Net sales in the wholesale, channel, however, were strong at $704 million, implying a 26% annualized organic growth rate Waddell & Reed has $45 billion of assets under management and 2,400 affiliated financial advisers.