Allfunds Group (ALLFG) Q3 2024 TU earnings summary

Executive summary

• Achieved record EUR 1.5 trillion in assets under administration (AuA), up 10% since December and 15% year-over-year, outpacing the European cross-border industry growth of 8%.

• Revenues increased 60% year on year and 16% year-over-year to EUR 154 million, with platform revenues up 16% and subscription revenues up 18%.

• Strong client acquisition with 63 new distributors year to date, 21 in Q3, and 51% of new clients captured from competitors, driving market share gains.

• Net inflows of EUR 23 billion in Q3, with EUR 10 billion from existing clients and EUR 18 billion onboarded in Q3, supported by positive market performance.

• Completed EUR 50 million share buyback, reducing share capital and demonstrating commitment to shareholder returns.

Financial highlights

• Platform service AuA increased 19% year-over-year to EUR 1,102 billion; dealing & execution AuA up 6% since December.

• Transaction revenues increased 29% year on year to EUR 23 million; subscription revenues grew over 18% year on year, maintaining a consistent quarterly contribution of EUR 16 million.

• Net Trading Income (NTI) reached EUR 23 million, up 11% year on year.

• Net flows as a percentage of beginning-of-period AuA were 2.3% in Q3, annualized at 9.2%.

• Market performance contributed EUR 21.1 billion to AuA in Q3.

Outlook and guidance

• Confident in achieving 2024 guidance, with a strong pipeline for Q4 and expectations to reach at least EUR 50 billion in new client migrations for the year.

• ETP platform launch scheduled for Q1 2025, with significant progress in talent acquisition and development.

• Positive momentum for 2025, with significant migrations delayed from Q4 2024 to H1 2025, but no change to the EUR 40-60 billion annual migration guidance.