Freedom Holding Corp. Reports First Quarter Fiscal Year 2025 Results
Freedom Holding Corp. (NASDAQ: FRHC) reported its Q1 FY2025 results, showing significant growth and expansion. The company achieved $451 million in revenue, a 43% increase from the previous year. However, net income decreased by 50% to $34 million, primarily due to unrealized losses on Kazakhstan sovereign bonds and increased expenses related to business growth.
Key highlights include:
- Diluted EPS of $0.57
- Total assets of $8.5 billion
- Launch of Freedom Bank KZ mobile SuperApp
- Expansion to 6,800 employees and 132 offices
- Increase in brokerage accounts to 532,000
The company's growth strategy focuses on expanding its fintech ecosystem, including retail banking, insurance, and ancillary services. Despite challenges, FRHC remains optimistic about future prospects and continues to invest in organic growth and potential acquisitions.
Freedom Holding Corp. (NASDAQ: FRHC) ha riportato i risultati per il primo trimestre dell'anno fiscale 2025, evidenziando una crescita e un'espansione significative. L'azienda ha raggiunto 451 milioni di dollari in ricavi, con un aumento del 43% rispetto all'anno precedente. Tuttavia, l'utile netto è diminuito del 50% a 34 milioni di dollari, principalmente a causa di perdite non realizzate sui titoli sovrani del Kazakistan e dell'aumento delle spese legate alla crescita aziendale.
I principali punti salienti includono:
- EPS diluiti di $0.57
- Attività totali di 8,5 miliardi di dollari
- Lancio della SuperApp mobile Freedom Bank KZ
- Espansione a 6.800 dipendenti e 132 uffici
- Aumento dei conti di intermediazione a 532.000
La strategia di crescita dell'azienda si concentra sull'espansione del suo ecosistema fintech, compresi il banking al dettaglio, l'assicurazione e i servizi ausiliari. Nonostante le sfide, FRHC rimane ottimista riguardo alle prospettive future e continua a investire nella crescita organica e in potenziali acquisizioni.
Freedom Holding Corp. (NASDAQ: FRHC) reportó sus resultados del primer trimestre del año fiscal 2025, mostrando un crecimiento y expansión significativos. La empresa alcanzó 451 millones de dólares en ingresos, un aumento del 43% respecto al año anterior. Sin embargo, el ingreso neto disminuyó un 50% a 34 millones de dólares, principalmente debido a pérdidas no realizadas en bonos soberanos de Kazajistán y a un aumento de los gastos relacionados con el crecimiento del negocio.
Los aspectos más destacados incluyen:
- EPS diluido de $0.57
- Activos totales de 8.5 mil millones de dólares
- Lanzamiento de la SuperApp móvil Freedom Bank KZ
- Expansión a 6,800 empleados y 132 oficinas
- Aumento de las cuentas de corretaje a 532,000
La estrategia de crecimiento de la empresa se centra en expandir su ecosistema fintech, que incluye banca al por menor, seguros y servicios auxiliares. A pesar de los desafíos, FRHC sigue siendo optimista sobre las perspectivas futuras y continúa invirtiendo en crecimiento orgánico y posibles adquisiciones.
프리덤 홀딩 코프(Freedom Holding Corp.) (NASDAQ: FRHC)는 2025 회계연도 첫 분기 실적을 발표하며 중요한 성장과 확장을 보여주었습니다. 이 회사는 4억 5,100만 달러의 수익을 달성했으며, 이는 전년 대비 43% 증가한 수치입니다. 그러나 순이익은 50% 감소하여 3천 4백만 달러가 되었으며, 이는 주로 카자흐스탄 국채에서의 미실현 손실과 사업 성장과 관련된 비용 증가 때문입니다.
주요 하이라이트는 다음과 같습니다:
- 희석주당순이익(EPS) $0.57
- 총 자산 85억 달러
- 프리덤 은행 KZ 모바일 슈퍼앱 출시
- 6,800명의 직원과 132개의 사무소로 확장
- 브로커리지 계좌 수 532,000개로 증가
회사의 성장 전략은 소매 은행, 보험 및 지원 서비스 등을 포함한 핀테크 생태계의 확장에 초점을 맞추고 있습니다. 도전에도 불구하고, FRHC는 미래 전망에 대해 낙관적이며 지속적으로 유기적 성장과 잠재적 인수에 투자하고 있습니다.
Freedom Holding Corp. (NASDAQ: FRHC) a annoncé ses résultats du premier trimestre de l'exercice 2025, montrant une croissance et une expansion significatives. L'entreprise a réalisé 451 millions de dollars de revenus, soit une augmentation de 43% par rapport à l'année précédente. Cependant, le bénéfice net a diminué de 50%, atteignant 34 millions de dollars, principalement en raison de pertes non réalisées sur les obligations souveraines du Kazakhstan et d'une augmentation des dépenses liées à la croissance de l'entreprise.
Les principaux faits saillants comprennent :
- Bénéfice par action dilué de 0,57 $
- Actifs totaux de 8,5 milliards de dollars
- Lancement de la SuperApp mobile Freedom Bank KZ
- Expansion à 6 800 employés et 132 bureaux
- Augmentation des comptes de courtage à 532 000
La stratégie de croissance de l'entreprise se concentre sur l'expansion de son écosystème fintech, y compris la banque de détail, l'assurance et les services auxiliaires. Malgré les défis, FRHC reste optimiste quant à ses perspectives futures et continue d'investir dans la croissance organique et les acquisitions potentielles.
Freedom Holding Corp. (NASDAQ: FRHC) hat ihre Ergebnisse für das erste Quartal des Geschäftsjahres 2025 veröffentlicht, die ein signifikantes Wachstum und eine Expansion zeigen. Das Unternehmen erzielte 451 Millionen Dollar Umsatz, was einem Anstieg von 43% im Vergleich zum Vorjahr entspricht. Allerdings sank der Nettogewinn um 50% auf 34 Millionen Dollar, hauptsächlich aufgrund von unrealisierte Verluste bei kasachischen Staatsanleihen und gestiegenen Ausgaben im Zusammenhang mit dem Unternehmenswachstum.
Wichtige Höhepunkte sind:
- Verdünnter Gewinn pro Aktie (EPS) von 0,57 $
- Gesamtvermögen von 8,5 Milliarden Dollar
- Einführung der mobilen SuperApp Freedom Bank KZ
- Erweiterung auf 6.800 Mitarbeiter und 132 Büros
- Erhöhung der Brokerage-Konten auf 532.000
Die Wachstumsstrategie des Unternehmens konzentriert sich auf die Erweiterung seines Fintech-Ökosystems, einschließlich Einzelhandelsbanking, Versicherungen und ergänzenden Dienstleistungen. Trotz der Herausforderungen bleibt FRHC optimistisch hinsichtlich der zukünftigen Perspektiven und investiert weiterhin in organisches Wachstum und potenzielle Übernahmen.
- Revenue increased by 43% to $451 million
- Interest income grew by 51% to $226 million
- Insurance underwriting income increased by 188%
- Fee and commission income rose by 17%
- Brokerage accounts grew to 532,000, with an 81% increase in active accounts
- S&P outlook for core subsidiaries revised from negative to positive
- Launch of Freedom Bank KZ mobile SuperApp
- Expansion to 6,800 employees and 132 offices
- Net income decreased by 50% to $34 million
- Unrealized net loss of $64.9 million on Kazakhstan sovereign bonds
- Total expenses increased by 77% to $409 million
- Banking segment experienced a 3% decrease in assets and 5% decrease in loan portfolio
- Diluted EPS decreased from $1.15 to $0.57 year-over-year
Insights
Freedom Holding Corp.'s Q1 FY2025 results show a mixed performance. While revenue increased by
The company's focus on growth is evident, with a
- Insurance underwriting income:
188% increase - Interest income:
51% increase - Fee and commission income:
17% increase
Freedom Holding Corp.'s strategic expansion is yielding results in customer acquisition and service diversification. Notable metrics include:
- Brokerage accounts increased by
33% to 532,000 - Active accounts grew by
81% - Employee headcount rose by
33% to 6,800
The launch of Freedom Bank KZ's SuperApp marks a significant step in Freedom Holding Corp.'s digital transformation. This all-in-one financial platform integrates banking, investing and lifestyle services, positioning the company competitively in the fintech space. The SuperApp strategy can lead to:
- Increased customer engagement and retention
- Enhanced data collection for personalized services
- Cross-selling opportunities across the company's ecosystem
Company Delivers
-
in revenue$451 million -
Net income of
or$34 million per share, diluted$0.57 -
Total expense of
$409 million -
in total assets as of end of quarter$8.5 billion - S&P outlook for Company’s core subsidiaries revised from negative to positive and the Company’s outlook from negative to stable
- Approximately 6,800 employees and 132 offices as of end of quarter
- Launch of the Freedom Bank KZ mobile application SuperApp
- Board of directors adds three new members
Income Statement Highlights:
The Company recognized revenue of approximately
Net income was approximately
Balance Sheet Highlights:
Total assets were
“Our investments in people, systems, and the expansion of our fintech ecosystem continues to bear fruit…”
Timur Turlov, the Company's founder and chief executive officer, provided commentary on the quarter by stating, "As has been our process for the past number of years, we continue to direct our profits into the further expansion of our business and the first quarter of fiscal 2025 was no exception. With a
Turlov continued, “Consistent with our general growth, I’m pleased to report that we have brought our global headcount to over 6,800 highly professional team members who support our business expansion. This compares to 5,100 for the first quarter of last year.”
“Our strongest contributor to our top line was interest income of just over
“…now our digital fintech platform includes our retail bank, insurance companies, and a growing list of popular ancillary services that are contributing to the growth of our customer base.”
Turlov continued, “Historically brokerage accounts set the foundation for the overall growth of our digital fintech platform, but now our platform includes our retail bank, insurance companies, and a growing list of popular ancillary services that are contributing to the growth of our customer base. These include on-line grocery, travel and entertainment services, additional regional retail offerings, and planned telecommunications and media service offerings. In support of this, in April of this year our retail bank, Freedom Bank KZ, launched its SuperApp, a one-stop shop of financial services that our customers can use to check their account balances, review transaction histories, make transfers and payments, open and manage deposits as well as have real-time portfolio monitoring and access to a whole array of investing support services at their fingertips. This is a win-win scenario as our customers will gain the convenience of access to needed products and services and we will gain significant amounts of consumer data that will allow us to continue to build value-add products that our customers will enjoy. We expect innovation like this to be a significant driver of future growth.”
“…the quarter sets the stage for another exemplary year...”
“Overall, we are pleased with the results of the quarter which sets the stage for another exemplary year for Freedom Holding Corp. We continue to position our company for success by making strategic investments to accelerate our organic growth and by winning the battle for expertise, both operationally and from a corporate governance perspective, in a highly competitive talent marketplace. In June of this year, we welcomed three new members to our board of directors: Dr. Kairat Kelimbetov, Andrew Gamble, and Philippe Vogeleer, all with deep experience and with diverse backgrounds which we expect will be instrumental in helping guide the continued expansion strategy of our company. Going forward, we will continue to pursue organic growth objectives and review potential acquisition targets and opportunities for additional international expansion. We are encouraged about the future prospects of the enterprise,” Turlov concluded.
Additional Select First Quarter Fiscal 2025 Highlights:
The Company’s Banking segment, comprising Freedom Bank KZ, experienced a
As of June 30, 2024 and March 31, 2024, the Company’s Insurance segment comprising Freedom Life and Freedom Insurance reported assets of
About Freedom Holding Corp.
Freedom Holding Corp., a
Freedom Holding Corp. is incorporated in
Freedom Holding Corp.'s common shares are registered with the United States Securities and Exchange Commission and are traded under the symbol FRHC on the Nasdaq Capital Market, operated by Nasdaq, Inc.
To learn more about Freedom Holding Corp., visit www.freedomholdingcorp.com.
Cautionary Note Regarding Forward-Looking Statements
This release contains "forward-looking" statements, including with respect to Freedom Holding Corp.'s potential for future growth and success. All forward-looking statements are subject to uncertainty and changes in circumstances. In some cases, forward-looking statements can be identified by terminology such as "expect," "new," "plan," "seek," and "will," or the negative of such terms or other comparable terminology used in connection with any discussion of future plans, actions, and events. Forward-looking statements are not guarantees of future results or performance and involve risks, assumptions, and uncertainties that could cause actual events or results to differ materially from the events or results described in, or anticipated by, the forward-looking statements. Factors that could materially affect such forward-looking statements include certain economic, business, and regulatory risks and factors identified in the Company's periodic and current reports filed with the
Website Disclosure
Freedom Holding Corp. intends to use its website, https://ir.freedomholdingcorp.com, as a means for disclosing material non-public information and for complying with
|
June 30, 2024 |
|
March 31, 2024 |
||||
|
|
|
|
||||
ASSETS |
|
|
|
||||
Cash and cash equivalents (including |
$ |
718,678 |
|
|
$ |
545,084 |
|
Restricted cash (including |
|
1,179,510 |
|
|
|
462,637 |
|
Trading securities (including |
|
3,393,936 |
|
|
|
3,688,620 |
|
Available-for-sale securities, at fair value |
|
262,860 |
|
|
|
216,621 |
|
Margin lending, brokerage and other receivables, net (including |
|
1,217,885 |
|
|
|
1,660,275 |
|
Loans issued (including |
|
1,314,552 |
|
|
|
1,381,715 |
|
Fixed assets, net |
|
100,474 |
|
|
|
83,002 |
|
Intangible assets, net |
|
45,535 |
|
|
|
47,668 |
|
Goodwill |
|
50,591 |
|
|
|
52,648 |
|
Right-of-use asset |
|
35,006 |
|
|
|
36,324 |
|
Insurance contract assets |
|
24,949 |
|
|
|
24,922 |
|
Other assets, net (including |
|
139,584 |
|
|
|
102,414 |
|
TOTAL ASSETS |
$ |
8,483,560 |
|
|
$ |
8,301,930 |
|
|
|
|
|
||||
LIABILITIES AND SHAREHOLDERS’ EQUITY |
|
|
|
||||
Securities repurchase agreement obligations |
$ |
2,558,794 |
|
|
$ |
2,756,596 |
|
Customer liabilities (including |
|
2,699,912 |
|
|
|
2,273,830 |
|
Margin lending and trade payables (including |
|
836,309 |
|
|
|
867,880 |
|
Liabilities from insurance activity (including |
|
320,394 |
|
|
|
297,180 |
|
Current income tax liability |
|
40,485 |
|
|
|
32,996 |
|
Debt securities issued |
|
266,398 |
|
|
|
267,251 |
|
Lease liability |
|
35,390 |
|
|
|
35,794 |
|
Liability arising from continuing involvement |
|
505,659 |
|
|
|
521,885 |
|
Other liabilities (including |
|
68,040 |
|
|
|
81,560 |
|
TOTAL LIABILITIES |
$ |
7,331,381 |
|
|
$ |
7,134,972 |
|
Commitments and Contingent Liabilities (Note 22) |
|
— |
|
|
|
— |
|
|
|
|
|
||||
SHAREHOLDERS’ EQUITY |
|
|
|
||||
Preferred stock - |
|
— |
|
|
|
— |
|
Common stock - |
|
60 |
|
|
|
60 |
|
Additional paid in capital |
|
197,205 |
|
|
|
183,788 |
|
Retained earnings |
|
1,033,140 |
|
|
|
998,740 |
|
Accumulated other comprehensive loss |
|
(81,393 |
) |
|
|
(18,938 |
) |
TOTAL FRHC SHAREHOLDERS’ EQUITY |
$ |
1,149,012 |
|
|
$ |
1,163,650 |
|
|
|
|
|
||||
Non-controlling interest |
|
3,167 |
|
|
|
3,308 |
|
TOTAL SHAREHOLDERS’ EQUITY |
$ |
1,152,179 |
|
|
$ |
1,166,958 |
|
|
|
|
|
||||
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY |
$ |
8,483,560 |
|
|
$ |
8,301,930 |
|
|
Three Months Ended June 30, |
||||||
|
2024 |
|
2023 |
||||
|
|
|
|
||||
Revenue: |
|
|
|
||||
Fee and commission income (including |
$ |
115,489 |
|
|
$ |
98,703 |
|
Net (loss)/gain on trading securities |
|
(52,102 |
) |
|
|
31,816 |
|
Interest income (including |
|
226,004 |
|
|
|
149,349 |
|
Insurance underwriting income |
|
129,408 |
|
|
|
44,889 |
|
Net gain on foreign exchange operations |
|
8,089 |
|
|
|
19,301 |
|
Net gain/(loss) on derivative |
|
12,494 |
|
|
|
(30,605 |
) |
Other income |
|
11,333 |
|
|
|
2,757 |
|
TOTAL REVENUE, NET |
$ |
450,715 |
|
|
$ |
316,210 |
|
|
|
|
|
||||
Expense: |
|
|
|
||||
Fee and commission expense (including |
$ |
80,147 |
|
|
$ |
28,684 |
|
Interest expense (including |
|
145,718 |
|
|
|
95,046 |
|
Insurance claims incurred, net of reinsurance |
|
47,309 |
|
|
|
21,514 |
|
Payroll and bonuses |
|
57,524 |
|
|
|
31,630 |
|
Professional services |
|
7,268 |
|
|
|
6,625 |
|
Stock compensation expense |
|
10,615 |
|
|
|
1,233 |
|
Advertising expense |
|
17,201 |
|
|
|
8,100 |
|
General and administrative expense (including |
|
45,105 |
|
|
|
24,475 |
|
(Recovery of)/provision for allowance for expected credit losses |
|
(1,770 |
) |
|
|
14,326 |
|
TOTAL EXPENSE |
$ |
409,117 |
|
|
$ |
231,633 |
|
|
|
|
|
||||
INCOME BEFORE INCOME TAX |
|
41,598 |
|
|
|
84,577 |
|
|
|
|
|
||||
Income tax expense |
|
(7,339 |
) |
|
|
(16,656 |
) |
|
|
|
|
||||
NET INCOME |
$ |
34,259 |
|
|
$ |
67,921 |
|
|
|
|
|
||||
Less: Net loss attributable to non-controlling interest in subsidiary |
|
(141 |
) |
|
|
(181 |
) |
NET INCOME ATTRIBUTABLE TO COMMON SHAREHOLDERS |
$ |
34,400 |
|
|
$ |
68,102 |
|
|
|
|
|
||||
OTHER COMPREHENSIVE INCOME |
|
|
|
||||
Change in unrealized gain on investments available-for-sale, net of tax effect |
|
3,374 |
|
|
|
2,239 |
|
Reclassification adjustment for net realized loss on available-for-sale investments disposed of in the period, net of tax effect |
|
(18 |
) |
|
|
(958 |
) |
Foreign currency translation adjustments |
|
(65,811 |
) |
|
|
(1,760 |
) |
OTHER COMPREHENSIVE LOSS |
|
(62,455 |
) |
|
|
(479 |
) |
|
|
|
|
||||
COMPREHENSIVE (LOSS)/INCOME BEFORE NON-CONTROLLING INTERESTS |
$ |
(28,196 |
) |
|
$ |
67,442 |
|
|
|
|
|
||||
Less: Comprehensive loss attributable to non-controlling interest in subsidiary |
|
(141 |
) |
|
|
(181 |
) |
|
|
|
|
||||
COMPREHENSIVE (LOSS)/INCOME ATTRIBUTABLE TO COMMON SHAREHOLDERS |
$ |
(28,055 |
) |
|
$ |
67,623 |
|
|
|
|
|
||||
EARNINGS PER COMMON SHARE (In |
|
|
|
||||
Earnings per common share - basic |
|
0.58 |
|
|
|
1.16 |
|
Earnings per common share - diluted |
|
0.57 |
|
|
|
1.15 |
|
|
|
|
|
||||
Weighted average number of shares (basic) |
|
59,258,085 |
|
|
|
58,512,215 |
|
Weighted average number of shares (diluted) |
|
60,255,593 |
|
|
|
59,293,691 |
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20240808856504/en/
Ramina Fakhrutdinova (KZ)
Public Relations
Freedom Finance JSC
+7 777 377 8868
pr@ffin.kz
Natalia Kharlashina
Public Relations
Freedom Holding Corp.
+7 701 364 1454
prglobal@ffin.kz
Al Palombo (US)
Global Communications Chief
Freedom US Markets
+1 212-980-4400, Ext. 1013
apalombo@freedomusmkts.com
Source: Freedom Holding Corp.
FAQ
What was Freedom Holding Corp's (FRHC) revenue for Q1 FY2025?
How did FRHC's net income change in Q1 FY2025 compared to the previous year?
What caused the decrease in FRHC's net income for Q1 FY2025?
How many brokerage accounts did FRHC have at the end of Q1 FY2025?