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Canaccord Genuity post Q3 loss of $21.5M; reverses year-earlier profit of $18.3M

TORONTO – Canaccord Genuity Group Inc. (TSX:CF) has reported a significant loss in its fiscal 2015 third-quarter just days after announcing it was cutting jobs at its global capital markets business due to weak market conditions.

The company, which offers brokerage, capital markets and wealth management services in Canada, the U.S., Europe and Asia, said Wednesday that its net loss for the three months ended Dec. 31 was $21.5 million or 27 cents per diluted share.

That compared with net income of $18.3 million or 14 cents per share in the same year-earlier period as revenue fell 28 per cent to $188.5 million from $231 million.

Excluding significant items, which totalled $7.9 million versus $3.6 million in the year-earlier period, the loss per common share was 19 cents, reversing a profit of 17 cents per share in the prior-year period.

Canaccord has said the downsizing would affect four per cent of its workforce, or about 80 positions, based on a total of about 2,013 employees at the end of September.

The company said Wednesday that the downsizing would also involve “key changes” within the executive structure of its global capital markets business.

Dan Daviau has been appointed CEO, North American capital markets, where he will manage Canadian and U.S. capital markets operations.

A number of other executive promotions and changes were also announced, including the departure of Matt Gaasenbeek, who will be stepping down as president of Canadian capital markets, and of Phil Evershed, who is leaving his role as global head of investment banking.