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 platform and tech solutions performance, record net inflows, and continued industry leadership in integrated wealth management.

• 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, tripling market share over four years to 7.3%.

• Maintained #1 position in platform net inflows and adviser satisfaction, expanding advisor base to 29% of licensed financial advisors.

• Completed major migrations and integration programs, notably Xplore Wealth, delivering targeted synergies and concluding related project costs.

• Launched new products and enhanced features, including cost-effective and high-net-worth solutions, and launched myprosperity enterprise offer with two large licensees signed.

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; tech solutions EBITDA up 1% to $22.1 million.

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

• 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 buyback of ~360,000 shares ($12.5 million).

Outlook and guidance

• FY26 custodial/platform super target range set at $115–$123 billion FUA, up from $84.4 billion at June 2024, with net flows guidance upgraded to greater than $11 billion per annum, excluding large migrations.

• Expecting further migrations from Equity Trustees in 1HFY25 and continued investment in technology, automation, and AI.

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

• Expecting OpEx growth in low- to mid-teens percentage year-on-year, with hiring stabilizing.