Full Year 2024 Netwealth Group Ltd Earnings Call Transcript
Key Points
- Netwealth Group Ltd (ASX:NWL) achieved a record $22 billion in gross inflows and $11.2 billion in net inflows, ending the financial year with $88 billion in funds under administration.
- The company reported a total income of $255.2 million, reflecting an 18.9% growth, and an EBITDA growth of 23.8%, resulting in an NPAT of $83.4 million, a 24.1% increase.
- Netwealth Group Ltd (ASX:NWL) received several awards, including the number one platform for Best Advised Product by Chant West and Best Product Offering and Best Transaction Tools in the Investment Trends Report.
- The company expanded its financial literacy program, reaching approximately 125,000 children since its inception.
- Netwealth Group Ltd (ASX:NWL) successfully acquired Xeppo, enhancing its data capabilities and positioning itself for an AI-driven future.
- Operating expenses increased by 14.5%, driven primarily by employee benefits expenses, which rose by $13 million due to the addition of 60 new roles.
- Revenue margins experienced compression due to lower average cash balances and positive market movements, which have an inverse effect on basis points.
- The company anticipates a small percentage increase in the rate of expense growth in FY25 compared to FY24, which may impact EBITDA margins.
- Despite strong revenue growth, reductions in cash balances and lower overall admin margins somewhat offset the gains.
- The integration and consolidation of Xeppo, while strategically beneficial, will initially be break-even, potentially impacting short-term profitability.
Thank you, Travis, and good morning, everyone. Thank you for dialing in. My name's Matt Heine. I'm the CEO and Managing Director of Netwealth, and I'm joined by Grant Boyle, our CFO.
It gives me great pleasure to deliver today the FY 2024 financial results.
Before we start, I would also like to acknowledge of country. We acknowledge the traditional owners of the lands that we work and live on. Our office here and where we're presenting from morning in Sydney on the lands of the Gadigal people of the Eora Nation. We celebrate the stories, culture, and traditions of the Aboriginal and Torres Strait Islander people of all nations and pay our respects to Elders past and present.
Moving across to the business and financial highlights. Last year was a fantastic year for Netwealth. We finished the financial year with the funds under administration of $88 billion, which represented a record $22 billion of gross inflows and a net inflow of $11.2 billion.
Pleasingly, and as a
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