HUB24 (ASX: $HUB) 1HFY24 Financial Highlights

HUB24 Limited (ASX: $HUB) has released its financial results for the first half of the financial year 2024 (1HFY24). The company reported a total group revenue of $156.7 million, representing a 14% increase, and a total group underlying EBITDA of $55.0 million, reflecting a 10% growth. The platform segment achieved a 17% revenue growth, reaching $120.0 million, and a 16% increase in underlying EBITDA, amounting to $47.9 million. The tech solutions segment reported a revenue of $34.8 million, with a 4% growth, and an underlying EBITDA of $10.1 million, down by 4%. The total Funds Under Administration (FUA) reached $91.2 billion, with platform FUA at $72.4 billion, and platform net inflows of $7.2 billion. The statutory NPAT was $30.4 million, up by 14%, and the interim dividend was fully franked at 18.5 cents per share, marking a 32% increase. The underlying EPS (diluted) grew by 12% to 36.2 cents per share.

Executive Commentary on 1HFY24 Performance

Kitrina Shanahan, Chief Financial Officer at HUB24, highlighted the company's strong financial performance in the first half of the financial year 2024. She emphasized the significant growth in net inflows, reaching $7.2 billion, and the 14% increase in Underlying NPAT. Shanahan also noted the successful launch of HUB24 Discover, the planned migration of Equity Trustees, and the ongoing product and service enhancements with Class Super achieving market-leading Net Promoter Score and receiving industry awards. Additionally, she mentioned the launch of new product features such as the AGILE retirement income solution and new high-net-worth capability, as well as the strong pipeline for myprosperity with the enterprise licensing model launched.

Summary of 1HFY24 Results and Outlook

HUB24's 1HFY24 financial results reflect a strong performance with notable achievements in net inflows, revenue growth, and profitability. The company's consistent delivery of growth and results, as evidenced by the 4-year CAGR of 31% in group revenue and 48% in group UEBITDA, demonstrates its market leadership and ability to enhance its customer proposition. HUB24's strategic focus on extending its managed portfolio leadership, expanding its adviser base, and leveraging its unique capabilities positions the company for continued growth and success. With a strong balance sheet, net cash, and ongoing investment in innovation, HUB24 is well-equipped to capitalize on the significant growth opportunities in the wealth industry and maintain its leadership position.