Praemium Limited – Q3 FY2025 Update Summary
Website: https://www.praemium.com.au
Overall Report Tone
The Q3 FY2025 update from Praemium Limited highlights continued growth in Funds Under Administration (FUA), led by strong performance in its newer Spectrum platform. While headline growth remains robust, platform-specific flows reveal areas of softness and adviser attrition challenges.
📊 Financial Results Summary (Per Share Metrics Not Disclosed)
| Metric | Q3 FY2025 | Q2 FY2025 | Q3 FY2024 | Change (YoY) |
|---|---|---|---|---|
| Total FUA | $62.3 billion | $62.1 billion | $53.3 billion | +17% |
| Platform FUA | $30.0 billion | $30.1 billion | $24.3 billion | +24% |
| Net Inflows | $364 million | $371 million | Not disclosed | ↓ $7 million QoQ |
| Spectrum FUA | $513 million | $72 million | Nil | +615% QoQ |
| Adjusted EBITDA, EBT, EPS | Not disclosed | |||
| Dividend | Not disclosed |
🟢 Positive Surprises or Potential Concerns
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📈 Strong growth in Spectrum with net inflows of $440 million, indicating rapid uptake of the IDPS solution.
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💸 Total FUA reached a record $62.3 billion, up 17% YoY, demonstrating broad-based resilience.
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⚠️ Powerwrap and OneVue reported net outflows of $66 million and $130 million respectively, raising questions about adviser retention.
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🧮 Negative market movement of $451 million impacted overall FUA growth.
📉 Result vs Market Expectations
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📌 Platform FUA growth of 24% YoY exceeds typical industry benchmarks.
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🔄 SMA net inflows of $120 million were down significantly from the previous quarter ($261 million), possibly below investor expectations.
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🛑 Powerwrap’s continuing outflows—driven by departed advisers—may weigh on sentiment despite broader growth.
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🆕 The inclusion of OneVue’s $4.1b FUA provides a one-off lift, but the net outflows suggest integration frictions.
🔮 Outlook and Guidance Statements
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🧪 CEO highlights strong pipeline for Spectrum in private wealth, suggesting momentum into FY2026.
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🔄 OneVue integration is on track, with synergies expected by FY-end—a key area to monitor.
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🧠 Investments in AI-driven quality assurance and administration automation to improve service delivery.
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🤝 New adviser onboarding processes and expanding in-house administration signal a strategic pivot toward service control.
✅ Analysts Likely to Increase Forecasts for FY25–26
Reasoning:
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Strong Revenue Momentum
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H1 FY25 revenue: $52.3M (↑33% YoY)
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Driven by OneVue acquisition ($6M), SMA repricing, and organic FUA growth.
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Solid EBITDA Margin Resilience
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Underlying EBITDA H1 FY25: $12.9M (↑43% YoY)
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EBITDA margin improved to 25% vs 23% prior period.
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Positive Net Profit Before Tax
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$7.52M in H1 FY25 vs $5.54M in H1 FY24 → +36% YoY
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Record FUA
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Total FUA: $62.3B at Q3 FY25 (↑17% YoY)
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Platform FUA: $30.0B (↑24%)
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Strong net inflows: $364M for Q3
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Growing Contribution from Spectrum
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Spectrum net inflows: $440M in Q3 FY25, up from $69M in Q2
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📊 Updated Metric Forecasts (FY ending 30 June)
| Metric | Analyst FY25 Estimate | Updated Estimate | Rationale |
|---|---|---|---|
| Revenue | $104.68M | $108M – $112M | 33% YoY growth in H1 implies beat likely |
| EBITDA | $26.65M | $28M – $30M | Strong H1 margin + cost control |
| EBT (adj.) | $19.34M | $20.5M – $21.5M | 36% YoY lift in H1 EBT already |
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.
Q3FY25 ASX:PPS