The Magellan Financial Group Ltd (ASX: MFG) share price is getting hammered today.

Shares in the S&P/ASX 200 Index (ASX: XJO) funds manager closed yesterday trading for $10.10. In morning trade on Thursday, shares were just trading for $8.75 apiece, down a painful 13.4%. After some likely bargain hunting, shares are currently changing hands for $9.12 apiece, down 9.7%.

For some context, the ASX 200 is down 1.1% at this same time.

This underperformance follows the release of Magellan's half-year results for the six months to 31 December (H1 FY 2025).

Here's what's happening with the ASX 200 stock.

Magellan share price hit by profit drop

The Magellan share price is under selling pressure after the company reported a 10% year-on-year decline in statutory net profit after tax (NPAT) to $94.0 million.

Adjusted NPAT also declined by 10% to $84.1 million.

And Magellan reported a profit before tax and performance fees for its Funds Management business of $72.1 million. That was also down 10% on the $79.9 million reported in H1 FY 2024.

On the plus side of the ledger, the ASX 200 stock saw a 3% uptick in its average assets under management to $38.1 billion.

The board declared an interim dividend of 26.4 cents per share, 85% franked. That's down 10% from last year's interim Magellan dividend. The dividend will be paid on 12 March. Magellan shares trade on a partly franked dividend yield (part trailing, part pending) of 6.8%.

The board also appointed Sophia Rahmani as Magellan's new CEO and managing director. She takes over the reins on 3 March.

What did management say?

Commenting on the results pressuring the Magellan share price today, executive chairman Andrew Formica said, "1H25 has seen marked progress towards stabilisation as well as significant strategic developments that position MFG well for future growth."

Formica continued:

The last six months has seen MFG continue to foster strong client relationships and innovate its product offering. Our distribution platform remains a competitive strength, and we have bolstered our global capacity with our presence in North America and now the UK, covering EMEA.

Following the strategic partnership with Vinva that was announced in August, during the half we launched three new systematic equity funds for the Australian market and progressed work on the adoption of a fourth.

As for what investors can expect over the coming months from the ASX 200 stock, Formica added:

Looking ahead, we are confident in our ability to rebuild and grow. With a new executive leadership structure in place and a clear focus on our strategic priorities, we are well-positioned to capitalise on opportunities and deliver sustainable growth.

Magellan share price snapshot

With today's intraday fall factored in, the Magellan share price remains up 3% over 12 months, not including dividends.