HUB24 Limited (ASX:HUB)
Australia flag Australia · Delayed Price · Currency is AUD
80.20
+0.19 (0.24%)
Jun 12, 2026, 4:10 PM AEST
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Earnings Call: H1 2023

Feb 21, 2023

Operator

Thank you for standing by, welcome to the HUB24 Limited 1H FY2023 results call. All participants are in a listen-only mode. There will be a presentation followed by a question and answer session. If you wish to ask a question, you will need to press the star key followed by one on your telephone keypad. I would now like to hand the conference over to Mr. Andrew Alcock, Managing Director. Ple ase go ahead.

Andrew Alcock
Managing Director, HUB24

Good morning, everyone, and welcome to our first half financial year 23 results presentation. Great to have you with us. I'm absolutely, certainly pleased on behalf of our great team here at HUB24 to be able to present some really solid results to the market this morning. We absolutely work very hard and are very focused in HUB24 and committed to what we do. We really believe in the value we're creating for our customers and shareholders, and it drives us to absolutely try and challenge ourselves and deliver in the marketplace. We do that, if we turn to the next slide again. As you will all know, we're about empowering better financial futures together.

Now more than ever, the together is important for us, given we've made acquisitions over the last couple of years that bring into our stable a whole lot of capability that allows us to continue to lead in the marketplace, create change, disrupt the market, provide better solutions and opportunities to extend our lead from a market competitiveness point of view. More importantly, to create opportunities for customers and unlock value for them. Real opportunity and real value based on us working together across our capability in the business, which is core to our overall strategy. Of course, working together with the broader marketplace, fund managers, financial advisors, licensees, other technology providers. We certainly believe in an integrated open architecture world.

That's what we're about. We think that's underpinning the great results we've got today and will do so more and more in the future to build a longer-term sustainable growth pattern for the business. If I move to our financial highlights slide this morning, it is great to be able to talk about these numbers. From a revenue perspective, the total HUB24 Group had AUD 138 million, up 69%. Our underlying EBITDA, just shy of AUD 50 million, but also up 68% on first half FY23. Breaking that down for the platform, it's AUD 102.7 million for the platform, up at 33%. The underlying EBITDA there up 38% at AUD 41.4 million.

Tech Solutions, having had Class in our business for a full six months for this half, Tech Solutions revenue increase is obviously large from prior to that acquisition at 33.4% and AUD 10.5 million underlying EBITDA. Leading to a statutory NPAT for the group of AUD 15.5 million, that's up 85% on the prior corresponding period. The underlying NPAT up AUD 26.6 million. Again, a large, increase, 87%. Underlying NPAT is taking out some transaction costs or integration costs for the Xplore integration, which I'll talk about later, and some investment in what we call HUB, sorry, HUB24, SMSF Access, which we're very excited about. There's some acquisition amortization out of that, which is the difference between statutory and underlying NPAT. Great, stats there.

Our dividend, we're really pleased to be increasing the dividend. It was AUD 0.125 last half, and I think AUD 0.075 prior corresponding period. We're up 87% at AUD 0.14, fully franked, with a diluted EPS of AUD 0.009 per share. Great results. We'll move along. Kitrina Shanahan, our CFO, will talk through the detail of this a bit later on in the pack. Some of the other key metrics here, our total FUA, AUD 73 billion. FUA having finished at 31/12 at 55.8, now up at 58.5. Of course, there's some market movement there. We've tracked just below market movement in that first few weeks of the year. That will help everyone think about the flow patterns to date.

Our past FUA pretty stable at 17.2. All in all, a very solid result. It's great to be able to say that once again, that's consistent with our track record. I move on to the next slide, we've got the 5-year picture there, in terms of our funds under admin, being a core revenue and profit driver of the business. That's got a 5-year CAGR of 60%, which is we're very, very proud about. The chart there has the Portfolio Administration and Reporting Service or non-custody admin there, as well as the core platform. On the right-hand side, we've broken down the revenue so you can see it a bit differently to our normal presentation of the slide. You can see Tech Solutions and platform revenue and corporate and licensee.

That's in the bars on that particular chart. Of course, licensee, we sold Paragem to Diverger at the end of 1H 2021. You see that dropping off there. That's the blue that disappears. You also see the yellow coming in at the end of the chart, which is the acquisition of Class. Giving you a picture of the revenue change in the book mix or the footprint, but clearly you can see the continuity of the trend in platform revenue being the dark blue and how that is driving results and coming through consistently in the business. With about AUD 138 million in revenue altogether and the EBITDA line, the group EBITDA line there just shy of AUD 50 million, as I said earlier, for 1H FY23.

You can see the trend back there five years. Great growth over five years. We hope to continue doing that. Certainly our focus on our strategy, our execution, our client service is intending to keep delivering in that way. We have a look at the actual market share and growth in market share for the HUB24 platform business and also for Class. The growth in the platform custody market, we've gone up from 4.6% market share 12 months ago or as at September, that's the latest data available, does lag 3 months. In the 12-month period to September 2022, data which came out in early January, it's up 1.1%- 5.7%. Consistently increasing market share in that quarter every year.

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