Praemium earnings up, fund flows down
Praemium has recorded a net profit after tax (NPAT) of $9.1 million over the first half of the 2023 financial year (1H23), up from a loss of $2.6 million in 1H22.
The result was underpinned by a 21% decline in total operating expenses, from $19.4 million to $15.4 million, offset by a 10% dip in revenue, from $39.2 million to $35.4 million.
However, EBITDA (excluding one-off realisations) grew 52%, up from $7.5 million in 1H22 to $11.4 million.
The platform business reported the sharpest earnings growth, up 19% to $25.9 million, while revenue from portfolio services increased 8% to $9.4 million.
The improvement in platform revenue cane despite a 65% slide in net inflows, from $2.9 billion in 1H22 to $1 billion in 1H23.
This contributed to a 12.8% contraction in funds under administration (FUA), from $49 billion in 1H22 to $42.7 billion
Reflecting on the overall result, Praemium CEO and executive director Anthony Wamsteker attributed the group’s performance to its recent divestment strategy.
“The 2023 financial half-year has seen key strategic decisions pay off with increased profitability and enhanced shareholder returns,” he said.
“This result, derived from strong net funds flow, margin expansion and discipline on costs, has delivered a step change improvement in operating leverage.
“We are very grateful to our outstanding people for their ongoing effort and its positive impact.”
Praemium’s 1H23 result is the first to reflect the company’s recent sale of its international business, which was acquired by Morningstar for $62 million in June 2022.
The sale resulted in a one-off NPAT of $43.6 million in FY22.
AUTHOR
Charbel Kadib
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