Freedom Holding Corp. Reports Second Quarter Fiscal Year 2025 Financial Results
A Record Quarter for the Company with
-
in revenue for the quarter$581 million -
Net income of
, or$115 million earnings per share, diluted, and$1.89 earnings per share, basic$1.93 -
Operating expenses of
$452 million -
in assets at the end of the quarter$8.8 billion -
Insurance underwriting segment lead revenue growth with a
121% Y.O.Y. increase - Expansion to 189 offices worldwide with over 7,100 full-time employees
Second Quarter Financial Highlights:
The Company recognized revenue of approximately
Net income was approximately
6 Months Year to Date Financial Highlights:
For the six months ending September 30, 2024, the Company's revenue totaled approximately
Net income was approximately
Balance Sheet Highlights:
Total assets were
"We experienced an expansion of retail client activity across all key business segments …”
Commenting on the results of the quarter, Timur Turlov, the Company's founder and chief executive officer, stated, "Overall we are pleased with the company’s financial performance during the reporting period. It was a record revenue quarter for Freedom where we achieved a
“Of the
“Staying ahead of the game…”
Commenting further, Turlov stated, “A key differentiator for Freedom Holding Corp. is in our ability to look ahead and identify low-competition, high-margin niches that others are unaware of, a task which is often easier said than done. Staying ahead of the game requires us to leverage the foundation of our digital ecosystem: an ecosystem that we have been building and improving over the course of the past 5 years. Millions of dollars and thousands of hours have been dedicated to this endeavor and the fruit of these investments and labors can be seen in the continued delivery of our positive financial results. One can’t overestimate the power of the Freedom SuperApp, which allows us to accumulate massive amounts of data about our consumers’ behavior and their preferences. This kind of Big Data is a significant competitive advantage as the more we know about our clients, the more rapidly we can create products and services that meet their specific needs. Trending data gives us foresight and we have been nimble and efficient enough to take advantage of this. Freedom Holding Corp. currently controls the largest ecosystem of financial services in
Additional second quarter fiscal 2025 highlights:
Insurance underwriting income for the quarter was
Fee and commission income for the three months ended September 30, 2024 was
The Company reported approximately 555,000 total retail brokerage customers as of September 30, 2024, as compared to approximately 530,000 as of March 31, 2024. Banking customer count totaled approximately 1,202,000 at the Company’s subsidiary, Freedom Bank KZ, as of September 30, 2024, as compared to approximately 904,000 as of March 31, 2024.
About Freedom Holding Corp.
Freedom Holding Corp., a
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. The Company has its main market of operations in
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 (the "Company") 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
Financial Tables to Follow
FREEDOM HOLDING CORP. |
|||||||
|
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CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) |
|||||||
(All amounts in thousands of |
|||||||
|
September 30, 2024 |
|
March 31, 2024 |
||||
|
|
|
|
||||
ASSETS |
|
|
|
||||
Cash and cash equivalents (including |
$ |
569,179 |
|
|
$ |
545,084 |
|
Restricted cash (including |
|
895,651 |
|
|
|
462,637 |
|
Trading securities (including |
|
3,601,118 |
|
|
|
3,688,620 |
|
Available-for-sale securities, at fair value |
|
284,580 |
|
|
|
216,621 |
|
Margin lending, brokerage and other receivables, net (including |
|
1,623,962 |
|
|
|
1,660,275 |
|
Loans issued (including |
|
1,368,656 |
|
|
|
1,381,715 |
|
Fixed assets, net |
|
142,446 |
|
|
|
83,002 |
|
Intangible assets, net |
|
46,112 |
|
|
|
47,668 |
|
Goodwill |
|
53,166 |
|
|
|
52,648 |
|
Right-of-use asset |
|
37,028 |
|
|
|
36,324 |
|
Insurance contract assets |
|
24,982 |
|
|
|
24,922 |
|
Other assets, net (including |
|
169,375 |
|
|
|
102,414 |
|
TOTAL ASSETS |
$ |
8,816,255 |
|
|
$ |
8,301,930 |
|
|
|
|
|
||||
LIABILITIES AND SHAREHOLDERS’ EQUITY |
|
|
|
||||
Securities repurchase agreement obligations |
$ |
2,584,131 |
|
|
$ |
2,756,596 |
|
Customer liabilities (including |
|
3,329,133 |
|
|
|
2,273,830 |
|
Margin lending and trade payables |
|
303,411 |
|
|
|
867,880 |
|
Liabilities from insurance activity |
|
364,156 |
|
|
|
297,180 |
|
Current income tax liability |
|
27,844 |
|
|
|
32,996 |
|
Debt securities issued |
|
267,341 |
|
|
|
267,251 |
|
Lease liability |
|
37,664 |
|
|
|
35,794 |
|
Liability arising from continuing involvement |
|
506,091 |
|
|
|
521,885 |
|
Other liabilities (including |
|
133,248 |
|
|
|
81,560 |
|
TOTAL LIABILITIES |
$ |
7,553,019 |
|
|
$ |
7,134,972 |
|
Commitments and Contingent Liabilities (Note 23) |
|
— |
|
|
|
— |
|
|
|
|
|
||||
SHAREHOLDERS’ EQUITY |
|
|
|
||||
Preferred stock - |
|
— |
|
|
|
— |
|
Common stock - |
|
61 |
|
|
|
60 |
|
Additional paid in capital |
|
209,249 |
|
|
|
183,788 |
|
Retained earnings |
|
1,147,798 |
|
|
|
998,740 |
|
Accumulated other comprehensive loss |
|
(96,869 |
) |
|
|
(18,938 |
) |
TOTAL FRHC SHAREHOLDERS’ EQUITY |
$ |
1,260,239 |
|
|
$ |
1,163,650 |
|
|
|
|
|
||||
Non-controlling interest |
|
2,997 |
|
|
|
3,308 |
|
TOTAL SHAREHOLDERS’ EQUITY |
$ |
1,263,236 |
|
|
$ |
1,166,958 |
|
|
|
|
|
||||
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY |
$ |
8,816,255 |
|
|
$ |
8,301,930 |
|
FREEDOM HOLDING CORP. |
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|
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CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND STATEMENTS OF OTHER COMPREHENSIVE INCOME (Unaudited) |
|||||||||||||||
(All amounts in thousands of |
|||||||||||||||
|
Three Months Ended September 30, |
|
Six Months Ended September 30, |
||||||||||||
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
|
|
|
|
|
|
|
|
||||||||
Revenue: |
|
|
|
|
|
|
|
||||||||
Fee and commission income (including for the three months ended |
$ |
121,051 |
|
|
$ |
111,703 |
|
|
$ |
236,540 |
|
|
$ |
210,406 |
|
Net gain on trading securities |
|
68,317 |
|
|
|
50,771 |
|
|
|
16,215 |
|
|
|
82,587 |
|
Interest income (including for the three months ended |
|
210,324 |
|
|
|
213,063 |
|
|
|
436,328 |
|
|
|
362,412 |
|
Insurance underwriting income |
|
160,344 |
|
|
|
57,976 |
|
|
|
289,752 |
|
|
|
102,865 |
|
Net gain/(loss) on foreign exchange operations |
|
6,479 |
|
|
|
(3,696 |
) |
|
|
14,568 |
|
|
|
15,605 |
|
Net gain/(loss) on derivative |
|
6,308 |
|
|
|
1,378 |
|
|
|
18,802 |
|
|
|
(29,227 |
) |
Other income |
|
8,077 |
|
|
|
4,386 |
|
|
|
19,410 |
|
|
|
7,143 |
|
TOTAL REVENUE, NET |
$ |
580,900 |
|
|
$ |
435,581 |
|
|
$ |
1,031,615 |
|
|
$ |
751,791 |
|
|
|
|
|
|
|
|
|
||||||||
Expense: |
|
|
|
|
|
|
|
||||||||
Fee and commission expense |
$ |
90,837 |
|
|
$ |
31,614 |
|
|
$ |
170,984 |
|
|
$ |
60,298 |
|
Interest expense |
|
124,665 |
|
|
|
139,381 |
|
|
|
270,383 |
|
|
|
234,427 |
|
Insurance claims incurred, net of reinsurance |
|
66,684 |
|
|
|
33,988 |
|
|
|
113,993 |
|
|
|
55,502 |
|
Payroll and bonuses |
|
66,210 |
|
|
|
39,998 |
|
|
|
123,734 |
|
|
|
71,628 |
|
Professional services |
|
8,245 |
|
|
|
11,951 |
|
|
|
15,513 |
|
|
|
18,576 |
|
Stock compensation expense |
|
12,056 |
|
|
|
1,031 |
|
|
|
22,671 |
|
|
|
2,264 |
|
Advertising expense |
|
20,049 |
|
|
|
8,639 |
|
|
|
37,250 |
|
|
|
16,739 |
|
General and administrative expense (including for the three months ended |
|
53,240 |
|
|
|
29,630 |
|
|
|
98,345 |
|
|
|
54,105 |
|
Provision for allowance for expected credit losses |
|
10,427 |
|
|
|
4,662 |
|
|
|
8,657 |
|
|
|
18,988 |
|
TOTAL EXPENSE |
$ |
452,413 |
|
|
$ |
300,894 |
|
|
$ |
861,530 |
|
|
$ |
532,527 |
|
|
|
|
|
|
|
|
|
||||||||
INCOME BEFORE INCOME TAX |
|
128,487 |
|
|
|
134,687 |
|
|
|
170,085 |
|
|
|
219,264 |
|
|
|
|
|
|
|
|
|
||||||||
Income tax expense |
|
(13,999 |
) |
|
|
(19,208 |
) |
|
|
(21,338 |
) |
|
|
(35,864 |
) |
|
|
|
|
|
|
|
|
||||||||
NET INCOME |
$ |
114,488 |
|
|
$ |
115,479 |
|
|
$ |
148,747 |
|
|
$ |
183,400 |
|
|
|
|
|
|
|
|
|
||||||||
Less: Net loss attributable to non-controlling interest in subsidiary |
|
(170 |
) |
|
|
(368 |
) |
|
|
(311 |
) |
|
|
(549 |
) |
NET INCOME ATTRIBUTABLE TO COMMON |
$ |
114,658 |
|
|
$ |
115,847 |
|
|
$ |
149,058 |
|
|
$ |
183,949 |
|
|
|
|
|
|
|
|
|
||||||||
OTHER COMPREHENSIVE INCOME |
|
|
|
|
|
|
|
||||||||
Change in unrealized gain on investments available-for-sale, net of tax effect |
|
4,306 |
|
|
|
2,168 |
|
|
|
7,680 |
|
|
|
4,407 |
|
Reclassification adjustment for net realized (gain)/loss on available-for-sale investments disposed of in the period, net of tax effect |
|
185 |
|
|
|
(306 |
) |
|
|
167 |
|
|
|
(1,264 |
) |
Foreign currency translation adjustments |
|
(19,967 |
) |
|
|
(29,933 |
) |
|
|
(85,778 |
) |
|
|
(31,693 |
) |
OTHER COMPREHENSIVE LOSS |
|
(15,476 |
) |
|
|
(28,071 |
) |
|
|
(77,931 |
) |
|
|
(28,550 |
) |
|
|
|
|
|
|
|
|
||||||||
COMPREHENSIVE INCOME BEFORE NON-CONTROLLING INTERESTS |
$ |
99,012 |
|
|
$ |
87,408 |
|
|
$ |
70,816 |
|
|
$ |
154,850 |
|
|
|
|
|
|
|
|
|
||||||||
Less: Comprehensive loss attributable to non-controlling interest in subsidiary |
|
(170 |
) |
|
|
(368 |
) |
|
|
(311 |
) |
|
|
(549 |
) |
|
|
|
|
|
|
|
|
||||||||
COMPREHENSIVE INCOME/(LOSS) ATTRIBUTABLE TO COMMON SHAREHOLDERS |
$ |
99,182 |
|
|
$ |
87,776 |
|
|
$ |
71,127 |
|
|
$ |
155,399 |
|
|
|
|
|
|
|
|
|
||||||||
EARNINGS PER COMMON SHARE (In |
|
|
|
|
|
|
|
||||||||
Earnings per common share - basic |
|
1.93 |
|
|
|
1.97 |
|
|
|
2.51 |
|
|
|
3.13 |
|
Earnings per common share - diluted |
|
1.89 |
|
|
|
1.95 |
|
|
|
2.46 |
|
|
|
3.09 |
|
|
|
|
|
|
|
|
|
||||||||
Weighted average number of shares (basic) |
|
59,363,122 |
|
|
|
58,581,332 |
|
|
|
59,310,891 |
|
|
|
58,546,963 |
|
Weighted average number of shares (diluted) |
|
60,460,173 |
|
|
|
59,291,832 |
|
|
|
60,358,442 |
|
|
|
59,292,757 |
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20241108030211/en/
Natalia Kharlashina
Public Relations
Freedom Holding Corp.
+7 701 364 1454
prglobal@ffin.kz
Ramina Fakhrutdinova (KZ)
Public Relations
Freedom Finance JSC
+7 777 377 8868
pr@ffin.kz
Al Palombo (US)
Global Communications Chief
Freedom US Markets
+1 212-980-4400, Ext. 1013
apalombo@freedomusmkts.com
Source: Freedom Holding Corp.