In This Article:
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Assets Under Administration (AUA): Increased by 13% to EUR1,558 billion.
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Net Flows: Reached EUR102 billion, an 11% increase.
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Net Revenues: EUR632 million, up 16% year-on-year.
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Adjusted EBITDA: EUR422 million, up 18%, with a margin of 66.8%.
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Normalized Free Cash Flow: EUR238 million, up 17%.
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Dividend Proposal: EUR80 million.
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Share Buyback: EUR250 million to be executed over the next two years.
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Platform Revenue Growth: Increased by 18%.
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Commission Revenues: Increased by 10%.
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Subscription Revenues: Increased by 13% to EUR67 million.
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Cost-to-Income Ratio: Improved from 37.4% to 35.6%.
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Cash Flow Generation: Increased by 24% to EUR217 million.
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Excess Capital: Over EUR280 million as of December 2024.
Release Date: March 04, 2025
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 (STU:6UY) achieved a 13% increase in assets under administration, reaching EUR1,558 billion.
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Net revenues hit a record of EUR632 million, up 16% year-on-year.
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Adjusted EBITDA increased by 18% to EUR422 million, with a margin of 66.8%.
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The company proposed an increased dividend of EUR80 million and a EUR250 million share buyback.
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Allfunds successfully onboarded 74 new distributors, a 40% increase from 2023.
Negative Points
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Net flows have not yet reached the average of the last 5 or 10 years.
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The company faces challenges from the US, China commercial crisis, and financial turmoil in Ukraine.
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Net treasury income is expected to decline by 30% year-on-year in 2025.
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The subscription-based revenue growth was softer than initially guided.
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The company anticipates a moderate increase in costs for 2025 due to strategic initiatives.
Q & A Highlights
Q: Can you explain the EUR250 billion pipeline and its relation to the EUR40 billion to EUR60 billion migrations guidance? A: Juan Alcaraz, CEO, explained that the goal is to convert 50% to 60% of the pipeline into real migrations, which aligns with their historical track record. Alvaro Perera, CFO, added that the pipeline is diversified, including medium-sized clients, smaller clients, and a few larger ones.
Q: How will the extended relationship with Intesa and Santander impact revenue? A: Alvaro Perera, CFO, stated that while incremental revenues from these entities might be seen, the relative weight in overall revenue is not expected to increase due to ongoing diversification efforts.
Q: What are the assumptions behind the 30% year-on-year decline in net treasury income guidance? A: Alvaro Perera, CFO, explained that the decline is driven by the current rates environment and forward curves, combined with average cash balances. They expect further increases in cash balances from new business and normalized transaction activity.