UPDATE 2-AllianceBernstein Q1 profit up on higher revenues

Mon May 3, 2010 6:25pm EDT

* Q1 net income $148 million vs $37 million year-ago

* Cites higher retail and private client revenue (adds detail on flows, headcount, COO quotes, byline)

By Ross Kerber

BOSTON, May 3 (Reuters) - New York investment manager AllianceBernstein Holding LP (AB.N) said on Monday its first-quarter profit rose four-fold from a year ago on higher revenue.

AllianceBernstein reported net income of $148 million for the three months ended March 31, up from $37 million for the same period in 2009.

For owners of units in publicly traded AllianceBernstein Holding LP, that worked out to 46 cents per unit, up from 7 cents per unit a year earlier.

The figures included a real estate sublease charge of $12 million, or four cents per unit.

Analysts, on average, had expected the company to earn 50 cents per unit, according to Thomson Reuters I/B/E/S, on revenue of $702 million.

Revenue for the operating company was $725 million, compared with $598 million a year earlier. The company cited higher revenue in its retail and private client sales channels.

The company said it had net outflows of $6.4 billion in the first quarter. The figure was 62 percent lower than the outflows it posted in the last three months of 2009, but came during a quarter in which rival fund firms posted net inflows including T Rowe Price Group (TROW.O) and Franklin Resources (BEN.N).

The money manager previously had said total assets under management were $501 billion at the end of March, up by $5 billion from the end of the year and $90 billion more than where they stood on March 31, 2009.

In a presentation to analysts the company said outflows were centered on its value and growth products, while it recorded fixed income inflows. A main driver was changes in asset allocations by insurance company clients, Chief Operating Officer David Steyn told analysts.

AllianceBernstein Holding owns just over a third of asset manager AllianceBernstein, with most of the remainder owned by France's AXA Group.(AXAF.PA)

AllianceBernstein said it had 4,276 employees at the end of March, 10 percent fewer than the 4,761 people it had a year earlier and down from a peak of about 5,600. Steyn said the company is doing some hiring, but the headcount would not reach 5,000 again. (Reporting by Ross Kerber, editing by Leslie Gevirtz)

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