Praemium (PPS) H2 2024 earnings summary

Executive summary

• FY24 revenue grew 11% year-over-year to AUD 84.9 million, with EBITDA of AUD 21.5 million and strong second-half momentum.

• Assets under administration (AUA/FUA) reached AUD 57.4 billion, up 26% from FY23, including AUD 4.1 billion from the OneVue acquisition.

• SMA FUA rose 18% to AUD 11.3 billion, with a 5-year CAGR of 12%.

• Active capital management included a fully franked AUD 0.01 dividend, share buybacks totaling AUD 21.5 million, and a strong balance sheet.

• OneVue integration is on track, adding strategic value, synergies, and enhanced scale and technology capabilities.

Financial highlights

• EBITDA increased to AUD 21.5 million, with a 42% improvement in H2 underlying EBITDA (excluding OneVue) and a 39% uplift in 2H24 compared to 1H24.

• Revenue grew 11% year-over-year, with 8% growth excluding OneVue.

• Net profit after tax (NPAT) was AUD 8.8 million, down 42% year-over-year due to higher costs and tax.

• Operating cash flow was AUD 19.2 million, closely aligned with EBITDA.

• Strong cash position of AUD 44.3 million, supporting dividend payments and buybacks.

Outlook and guidance

• Expect continued momentum into FY25, with full-year impact of SMA repricing and progressive rollout of VMA/VMAAS repricing, with full effect in FY26.

• Launch of next-gen IDPS in October 2024 targets the high-net-worth segment's "wrap gap."

• Cost growth expected to be constrained to 5–10% in a strong year, with wage growth targeted around 3%.

• Headcount expected to remain stable or gradually decline due to productivity improvements, especially from AI.

• Continued focus on client retention, operational efficiency, and successful OneVue migration.