Allfunds Group (ALLFG) H1 2024 earnings summary

Executive summary

• Achieved record financial performance in H1 2024, with AuA up 9% year-on-year to €1,467bn, strong net positive flows, and robust growth in revenues and profitability, supported by market recovery and positive client flows.

• Net revenues reached €310m (+16% YoY), Adjusted EBITDA was €210m (+22% YoY) with a margin of 68%.

• Subscription-based business grew 18% YoY, and private markets/alternatives platform AuA reached €16bn, with 27% YTD growth in distribution.

• Launched new digital and AI-powered tools, announced a new ETP platform for Q1 2025, and expanded in key markets.

• Guidance for FY24 reaffirmed, with higher conviction to reach the upper end of revenue and AuA targets.

Financial highlights

• AuA grew from €1,349.5bn to €1,466.7bn (+8.7% YoY), up 6% from December 2023.

• Net revenues: €309.6m (+16.4% YoY); Adjusted EBITDA: €210.3m (+22.4% YoY); Adjusted EPS: €0.202 (+19.8% YoY); Free cash flow: €120.5m (+19.1% YoY).

• Platform revenues: €278.3m (+16% YoY); Subscription revenues: €31.3m (+18% YoY).

• Adjusted EBITDA margin improved to 67.9% (from 64.6%); net platform revenue margin rose to 3.9bps.

• CET1 ratio at 21.8% as of June 2024, indicating strong solvency.

Outlook and guidance

• FY24 guidance confirmed, with expectations to reach the upper end of revenue and AuA targets; secured migrations of €40-60bn expected for H2 2024.

• Net revenue growth expected in high single to low double digits; subscription revenues to grow in mid to high teens.

• Adjusted EBITDA margin expected to remain stable in 2024 and trend toward 70% mid-term.

• ETP platform launch in Q1 2025 expected to further strengthen the value proposition.

• Share buy-back programme of up to €50m to be completed by October 2024.