Praemium (ASX: $PPS) Half Year Report Overview

Praemium Limited (ASX: $PPS) has released its Half Year Report for the period ended 31 December 2023. The report highlights a $9.0 million underlying EBITDA, a scalable Funds Under Administration (FUA) of $48.3 billion, and $7.5 million returned to shareholders. Praemium's revenue and other income amounted to $39.7 million for the half year, reflecting a 10% increase compared to the prior year. The report also includes commentary on the financial performance and a review of operations.

Executive Commentary on Half Year Performance

Established in Australia in 2001, Praemium operates an Australian based fully integrated platform, providing advisers and wealth managers with the ability to construct a full breadth of custody and non-custody solutions for their clients via a seamless digital platform experience. The group's total funds under administration (FUA) at 31 December 2023 amounted to $48.3 billion, showing a 10% increase from the previous period. The half yearly net inflows were $31 million, with Praemium SMA half yearly net inflows at $416 million and Powerwrap half yearly net outflows at $385 million. Praemium achieved a strong result by placing 3rd overall in the Investment Trends 2023 Platform Competitive Analysis and Benchmarking Report, scoring 90% on platform functionality. The company's outstanding performance is evidenced by being ranked the No.1 platform for Decision Support Tools and Security, Data & Integration.

Summary of Half Year Report and Outlook

Praemium's Half Year Report for the period ended 31 December 2023 demonstrates a robust financial performance with a $9.0 million underlying EBITDA and a scalable FUA of $48.3 billion. The company's revenue and other income increased by 10% compared to the prior year, reflecting higher average Platform FUA and increased numbers of non-custodial portfolios. Despite a reduction in EBITDA, Praemium's strong market position and continued growth in FUA indicate a positive outlook. The acquisition of Iress Ltd's One Vue Platform Business further demonstrates the company's commitment to expanding its services and market presence. Praemium's focus on innovation and technology, as evidenced by its high scores in platform functionality, positions the company for continued success in the wealth management industry.