EQT (EQT) H2 2024 earnings summary

Executive summary

• FY 2024 saw strong growth, with FUMAS up 26.7% to AUD 202.8 billion and revenue up 23.1% to AUD 174 million, driven by AET integration, technology investment, and new client onboarding.

• Net profit after tax rose 10% to AUD 20.7 million (statutory) and 13.8% to AUD 37.9 million (underlying), with EPS up 5.3% to AUD 0.7784 and underlying EPS up 9%.

• Dividend increased to AUD 1.04 per share, reflecting confidence in ongoing earnings and transformation progress.

• Total shareholder return reached 27.5% for the year.

• Continued technology transformation and improved employee engagement and client satisfaction.

Financial highlights

• Revenue growth of 23.1% was supported by AET annualization, revenue synergies, positive market effects, and new business, especially in CSTS.

• Expenses rose 28.3% to AUD 142 million, driven by AET, restructuring, technology upgrades, and inflation.

• Underlying NPAT increased by AUD 4.6 million, with AET and market effects offsetting higher interest and BAU costs.

• Strong cash position of AUD 113.2 million, with net cash flow from operations up AUD 20 million year-over-year.

• Debt-to-equity ratio remains low at 11.9%, with borrowing capacity of AUD 33 million.

Outlook and guidance

• Focus remains on completing AET integration, achieving synergy targets, and finalizing technology modernization by FY 2025.

• Expectation of margin improvement as technology investments are leveraged and scale increases.

• Continued investment in technology, with AUD 5 million planned for FY 2025, to support operational efficiency and regulatory compliance.

• Anticipated growth in CSTS and Trustee Wealth Services, with strong pipelines in superannuation and fund services.

• FY25 expected to benefit from reduced one-off integration and technology costs.