Generation Development Group (GDG) H1 2025 earnings summary

Executive summary

• Achieved record statutory net profit after tax of $78.9m for HY25, driven by a $75.1m gain on Lonsec remeasurement and strong underlying profit after tax of $12.4m, up from $4.9m year-over-year.

• Completed the acquisition of Evidentia for $320m, creating a market-leading managed accounts platform with over $25bn FUM, and finalized 100% ownership of Lonsec.

• Business transformed into a diversified financial services group, leading in investment bonds, annuities, research, ratings, and managed accounts.

• Relinquished Pooled Development Fund status in FY24, reverting to a 30% company tax rate.

• Maintained a capital-light business model, with plans to increase dividend payout ratio in the next 12–18 months.

Financial highlights

• Underlying profit after tax rose 152% to $12.4m, with statutory profit after tax at $78.9m, including a $75.1m gain on Lonsec remeasurement.

• Consolidated revenue for HY25 was $65.7m, up 23% year-over-year; total revenue (excluding insurance) reached $372.0m.

• Investment Bonds FUM reached $3.8bn, up 31% year-over-year; Lonsec FUM at $12.7bn, up 19% for the half.

• Lonsec revenue up 14% YoY to $35.5m; EBITDA up 25% to $14.8m; NPAT up 34% to $8.7m.

• Cash and cash equivalents at 31 Dec 2024 were $105.3m; net assets increased to $346.1m.

Outlook and guidance

• Positive outlook with continued momentum in sales and inflows across all segments, supported by new product initiatives and legislative tailwinds.

• Managed accounts sector projected to grow to $474bn by 2030, with the group targeting to expand its 12–13% market share.

• Focus on integrating Evidentia and Lonsec acquisitions and optimizing the new operating structure.

• Investment bond sales outlook remains strong; Lifelncome expected to deliver solid results.