Iress (IRE) H2 2024 earnings summary

Executive summary

• Achieved record FY 2024 financial results ahead of guidance, driven by a multi-year transformation program focused on cost discipline, performance, and core business focus, resulting in a materially strengthened balance sheet.

• Embedded new management disciplines, reset cost and asset base, and reinstated a final dividend of AUD 0.10 per share.

• Divested non-strategic assets, now focused on two core businesses: Trading & Global Market Data and Wealth Management, with the Superannuation business sale to Apex Group expected to complete in Q2-25.

Financial highlights

• Adjusted EBITDA up 25.2% to AUD 132.8 million; margin expanded by over 500 basis points to 22.0%; underlying EPS up 72.4% to AUD 0.34 per share year-over-year.

• NPATA increased 192.2% to AUD 30.1 million year-over-year.

• Free cash flow up 192% to AUD 30.1 million; net debt reduced by over AUD 200 million; leverage ratio down to 1x from 2.5x.

• Revenue from continuing business grew 4% year-over-year, despite total revenue declining 3.4% due to divestments.

• Operating costs down 9% overall; headcount reduced by 15% to 1,500.

Outlook and guidance

• FY 2025 NPATA guidance: AUD 54–62 million, up 80–106% from 2024.

• Adjusted EBITDA guidance for 2025: AUD 127–135 million, representing 6–12% growth on continuing business.

• Revenue growth expected at 4–5% for 2025, with cost growth at 3–5%, supporting further margin expansion.

• Dividend payout ratio target set at 50–70% of NPATA going forward.

• Further simplification expected with Superannuation divestment; focus on cost discipline, operating leverage, and investing for future growth.