Praemium – 2025 Half-Year Results Summary
Website: praemium.com
Overall Report Tone
Praemium has delivered a strong financial performance for the half-year ending 31 December 2024, driven by substantial revenue growth, improved margins, and strategic acquisitions. The company has continued to scale its Funds Under Administration (FUA) while maintaining solid profitability and rewarding shareholders with a dividend and share buyback.
Financial Results Summary (Per Share Metrics)
| Metric | H1 FY25 | H1 FY24 | Change | % Change |
|---|---|---|---|---|
| 💰 Revenue | $51.4M | $38.5M | +$12.9M | +33% |
| 📈 Adjusted EBITDA | $12.9M | $9.0M | +$3.9M | +43% |
| 💵 Operating Cash Flow | $5.2M | $6.8M | -$1.5M | -23% |
| 🏦 Adjusted EBT | $7.5M | $5.5M | +$2.0M | +36% |
| 📊 Normalised EPS | 1.2c | 0.8c | +0.4c | +50% |
| 🎉 Dividend per Share | 1.0c | N/A | – | – |
Key New Information from the Report
- 🚀 Acquisition Impact: OneVue contributed $6.0M in additional revenue but had a slight negative impact on EBITDA (-$453K).
- 📢 New Platform Launched: “Spectrum” launched in October 2024 with initial $72M in FUA and $69M net inflows.
- 💡 Significant Platform Growth: Total FUA up 8% to $62.1B, with Praemium SMA up 11% and Powerwrap reversing outflows from the prior period.
- 💸 Dividend & Buyback: A fully franked dividend of 1c per share to be paid March 21, 2025, and $2.7M share buyback completed.
Positive Surprises / Potential Concerns
✔ Revenue growth of 33% outperformed prior periods significantly.
✔ EBITDA margin increased to 25% (from 23% in H1 FY24), indicating strong operational efficiency.
✔ Powerwrap turned around net inflows of $18M, compared to a $385M outflow in H1 FY24.
⚠ Operating cash flow declined 23%, mainly due to acquisition integration and higher marketing costs.
⚠ OneVue acquisition yet to be fully accretive, contributing to increased expenses.
Results vs Market Expectations
✔ EPS growth of 50% exceeded market expectations driven by improved margins and platform growth.
✔ Net profit growth of 45% suggests stronger-than-anticipated profitability.
⚠ Higher expenses from acquisition and marketing investments could raise concerns on cost control.
⚠ Cash balance declined 9% due to shareholder distributions and R&D investments.
Outlook & Guidance
✔ Continued FUA growth expected, particularly in Spectrum and SMA segments.
✔ Margin improvements likely from SMA repricing and operational efficiencies.
✔ Further integration of OneVue to unlock synergies.
⚠ Macroeconomic factors and equity market volatility remain key risks.
Market Positioning
✔ Ranked #3 overall in Investment Trends 2025 Competitive Analysis Report.
✔ #1 ranking for Reporting, Data, Integration, and Security in wealth management platforms.
✔ Strong adoption of Praemium’s non-custodial solutions, appealing to IFAs and private wealth managers.
✔ High client retention rates and new product launches continue to drive competitive differentiation.
Analyst Positioning
Given Praemium’s strong H1 FY25 results, I would expect analysts’ full-year forecasts for 2025 and 2026 to trend higher, particularly for revenue and EBITDA:
- Revenue expectations of AUD 104.42M for 2025 may be revised upwards, considering H1 revenue was already AUD 51.4M (+33% YoY). If H2 follows similar growth trends, full-year revenue could land closer to AUD 105M–107M.
- 2026 revenue of AUD 111.13M could also see an upward revision, particularly with new platform launches (Spectrum) and continued FUA growth.
- EBITDA projections (AUD 28.33M for 2025, AUD 32.38M for 2026) may be adjusted higher, given a 25% EBITDA margin in H1 and potential margin improvements from scale efficiencies. A range of AUD 29M–30M for FY25 and AUD 33M–35M for FY26 now seems plausible.
- Downside risks include integration costs for OneVue and macroeconomic conditions affecting FUA growth.
Share Price Movement
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Disclaimer: This information is provided purely for educational purposes. It takes no account of an individual’s personal financial circumstances and hence can in no way constitute financial advice. The above data may be subject to errors or inconsistencies for which the author takes no liability. It is imperative that all investors do their own research or if they need advice, seek it from a qualified financial adviser.
Quick Take: H1FY25 ASX:PPS