HUB24 (HUB) H2 2024 earnings summary

Executive summary

• Achieved record-breaking FY24 results with group revenue up 17% to $327.3 million and underlying EBITDA up 15% to $118 million, driven by strong net inflows and market growth.

• Funds under administration (FUA) rose 30% to $104.7 billion, with platform FUA up 35% to $84.4 billion and record net inflows of $15.8 billion.

• Statutory NPAT increased 24% to $47.2 million; underlying NPAT up 15% to $67.8 million; fully franked final dividend of 19.5 cents per share, total FY24 dividend up 17%.

• Maintained #1 position in platform net inflows and adviser satisfaction, with significant market share gains and continued product innovation.

• Completed major client migrations and Xplore Wealth integration, delivering targeted synergies.

Financial highlights

• Group revenue up 17% to $327.3 million; platform revenue up 21% to $252.8 million; tech solutions revenue up 5% to $70.7 million.

• Underlying EBITDA up 15% to $118 million; platform EBITDA up 21% to $103 million; group underlying EBITDA margin at 36.1%, down 0.5%.

• Statutory NPAT $47.2 million (up 24%); underlying NPAT $67.8 million (up 15%); underlying diluted EPS 81.1 cents (up 14%).

• Fully franked final dividend of 19.5 cents per share; total FY24 dividend 38 cents, up 17%.

• Operating cash flows of $109 million; cash balance of $88 million; share buy-back of ~$12.5 million.

Outlook and guidance

• FY26 custodial/platform super FUA target range set at $115–$123 billion, up from $84.4 billion at June 2024.

• Net flows guidance upgraded to greater than $11 billion per annum, excluding large migrations.

• Expecting further client migrations in 1HFY25 and continued investment in technology, data, and product innovation.

• Focus on disciplined cost management, margin expansion, and leveraging group capabilities for growth.

• Operating expense growth expected in low- to mid-teens percentage, with hiring stabilizing and automation driving leverage.