Praemium (PPS) Q4 2024 TU earnings summary

Executive summary

• Total funds under administration (FUA) reached $57.4 billion as of June 2024, up 30% year-over-year, driven by strong VMAAS growth and the OneVue acquisition.

• Platform FUA increased 26% to $28.1 billion, with VMAAS non-custodial service FUA up 34% to $29.3 billion year-over-year.

• OneVue contributed $4.0 billion in FUA post-acquisition, with net outflows in line with expectations.

• Powerwrap experienced continued adviser-driven outflows, impacting net flows.

• Next-generation IDPS product launch is in final stages, with operational transformation and service enhancements underway.

Financial highlights

• FUA rose 8% from March 2024 to $57.4 billion, with platform FUA at $28.1 billion (up 16% from March 2024) and VMAAS FUA at $29.3 billion (up 8%).

• Quarterly net outflows totaled $414 million, with SMA net inflows of $149 million and Powerwrap net outflows of $437 million.

• OneVue quarterly net outflows were $126 million, an improvement from $174 million pre-acquisition.

• Market movement contributed a $142 million increase in FUA.

• 41 new client organizations joined VMA and VMAAS services during the financial year.

Outlook and guidance

• Adviser transitions at Powerwrap are expected to continue at about AUD 250 million per quarter for another six months.

• Confident in sustaining double-digit revenue and FUA growth, supported by new product launches and integration synergies.

• Long-term client business growth is anticipated to offset negative impacts from adviser exits.

• Focus on leveraging a single technology stack to realize operational synergies and streamline product offerings.

• Enhanced service delivery and dispute resolution expected to improve client support.