Canaccord Financial Inc. (TSX:CF) said Thursday it lost $5.3 million in its latest quarter as the investment firm was hit by the financial market turbulence caused by worries about European sovereign debt and the U.S. economy.
The company said the loss amounted to nine cents per diluted share for the quarter ended Sept. 30 compared with a profit of $10.3 million or 12 cents per diluted share a year ago.
Revenue for what was the company’s second quarter totalled $119.5 million, down from $149.3 million.
Excluding costs related to Canaccord’s investment in BGF Equities, a small equities advisory firms in Australia, and other one-time items, the company said it would have lost $1.7 million or five cents per share compared with an adjusted profit of $12.1 million or 15 cents a year ago.
The average analyst estimate according to Thomson Reuters had been for a profit of two cents per share.
“Ongoing global economic uncertainty and market volatility had a considerable impact on issuer confidence and investment banking activity,” Canaccord president and chief executive Paul Reynolds said in a statement.
“Our results this quarter reflect the challenging market environment; however, we remain very well capitalized and strategically positioned to expand our global platform and grow our market share.”
In August, Canaccord signed a deal to invest $41 million for a 50% stake in BGF Equities.
The deal, which also gives Canaccord an option to buy the rest of BGF in five years, will help the Canadian company’s expansion into the Australian as well as Hong Kong markets.
Canaccord is an independent, full-service financial services firm, with operations in wealth management and global capital markets.
The company’s shares closed at $8.64, down 10 cents, before the results were released Thursday.