Netwealth Group (NWL) H2 2024 earnings summary

Executive summary

• Achieved record FUA of AUD 88 billion, up 25.2% year-over-year, with net inflows of AUD 11.2 billion for FY2024.

• Total income reached AUD 255.2 million, up 18.9% year-over-year, and NPAT grew 24.1% to AUD 83.4 million.

• Platform market share increased to 7.7% by March, outperforming legacy platforms and gaining 0.9% market share.

• Completed 100% acquisition of Xeppo, enhancing data, analytics, and AI capabilities.

• Recognized with multiple industry awards and maintained strong growth in high net worth and private client segments.

Financial highlights

• EBITDA rose 23.8% to AUD 124.7 million, with an EBITDA margin of 48.8%.

• Platform revenue increased 18.0% to AUD 249.5 million; other income up 75.6% to AUD 5.7 million.

• Pre-operating cash flow was AUD 127.3 million; free cash flow before tax up 20.9% to AUD 120.1 million.

• EPS grew 24.1% to 33.8 cents; fully franked dividend of AUD 0.28 per share declared.

• Revenue per account increased to AUD 1,864, with average FUA per account at AUD 583,000.

Outlook and guidance

• Strong new business pipeline and conversion rates, with AUD 1.2 billion net inflows in July 2024.

• Continued investment in people, product, security, and technology expected to slightly increase expense growth for FY2025.

• Management remains confident in future growth opportunities, supported by high recurring revenue, strong cash reserves, and a debt-free position.