In This Article:
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Revenue: EUR310 million, a 16.4% growth versus first half of 2023.
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Adjusted EBITDA: EUR210 million, implying a margin of 68%.
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Adjusted Earnings Per Share: 20% growth.
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Free Cash Flow: 19% growth.
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Net Platform Revenue Margin: Increased from 3.7 basis points to 3.9 basis points.
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Platform Service Margin: Increased from 5.1 basis points to 5.4 basis points.
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Subscription Revenue: Increased by 18% to EUR31 million.
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Assets under Administration (AuA): EUR1.47 trillion, 6% above December 2023, and a 9% year-on-year growth.
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Net Flows: EUR14.3 billion.
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New Clients Onboarded: 42 new clients, a 35% growth year-on-year.
Release Date: July 30, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Allfunds Group PLC (FRA:6UY) reported record financial performance for the first half of 2024, with revenues reaching EUR310 million, a 16.4% increase compared to the first half of 2023.
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The company achieved a strong adjusted EBITDA margin of 68%, reflecting a 22% growth in adjusted EBITDA compared to the previous year.
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Allfunds Group PLC (FRA:6UY) experienced a significant recovery in net flows, with EUR14.3 billion in positive net flows, marking the first inflows from existing clients since 2021.
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The subscription business grew by 18% in the first half of 2024, driven by improved commercial activity and successful integration of recent acquisitions.
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The company is expanding its platform offerings with the introduction of a new ETP platform, expected to launch in the first quarter of 2025, aiming to capture a growing market estimated at EUR2 trillion.
Negative Points
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Despite the positive financial performance, the company faces challenges with the ongoing shift from rebate-bearing AuA to non-rebate-bearing AuA, which may impact future revenue margins.
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The subscription revenue growth, although positive, has faced competition from fintechs and other digital service providers, which could affect future growth rates.
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The company anticipates a weaker second half of 2024 for net treasury income due to potential rate cuts and seasonal transaction activity declines in Q3.
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Allfunds Group PLC (FRA:6UY) continues to face pressure from a competitive market environment, particularly in the alternatives and ETP segments.
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The company has not yet achieved its target of 30% revenue from subscription services, indicating a need for further M&A activity to reach this goal.
Q & A Highlights
Q: Can you provide an update on the alternative platform and the expected inflows? A: Juan Alcaraz, CEO, mentioned that regulatory changes are expected to boost alternative investments in Europe. There is significant interest from private banks and wealth managers, expanding beyond institutional investors. The platform is seeing demand from both large and mid-sized distributors.