Freedom Holding Corp. Reports Third Quarter Fiscal Year 2024 Financial Results
With
-
in revenue$419 million -
Net income of
, or$96 million earnings per share, diluted$1.63 -
Operating expenses of
$307 million -
177% increase in insurance underwriting premiums to approximately$79 million -
New branch offices now include
Italy ,The Netherlands ,Austria , andBulgaria
Third Quarter Financial Highlights:
The Company recognized revenue of approximately
Net income was approximately
Nine Months Year to Date Financial Highlights:
For the nine months ending December 31, 2023, the Company's revenue totaled approximately
Net income was approximately
Balance Sheet Highlights:
Total assets were
Brokerage Customer Information:
Total brokerage customer count for the Company increased to approximately 458,000 at December 31, 2023, as compared to approximately 370,000 customers at the fiscal year ended March 31, 2023. Approximately
"Our Central Asia and Eastern European business lead the way for growth…"
Commenting on the quarterly results, Timur Turlov, the Company's founder and chief executive officer, stated, "Our fiscal year 2024 has been excellent thus far, highlighted by the planned diversification of our revenue streams and the healthy expansion of almost all business lines in each of our regions. Central Asian operations (
"Our Central Asia and Eastern European business lead the way for growth for our enterprise, which includes our Freedom Finance Bank, Freedom Finance Global, Freedom Finance JSC, and our insurance divisions: Freedom Life and Freedom Insurance," Turlov remarked, "contributing approximately
"Our operating expenses grew in line with our strategic expansion…"
In the third quarter of fiscal 2024, Freedom Holding Corp. reported
"Highlighted by
Additional select third quarter fiscal 2024 highlights:
Similar to the preceding quarter ended September 30, 2023, interest income was the key driver of Freedom Holding Corp.'s performance, reaching
The Company realized a net loss from securities trading of approximately
Fee and commission income rose by
About Freedom Holding Corp.
Freedom Holding Corp., a
Freedom Holding Corp. is headquartered 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 (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
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) |
|||||
(All amounts in thousands of |
|||||
December 31, 2023 |
March 31, 2023 |
||||
ASSETS |
|
|
|
||
Cash and cash equivalents |
561,883 |
|
|
581,417 |
|
Restricted cash |
384,553 |
|
|
445,528 |
|
Trading securities |
3,680,453 |
|
|
2,412,556 |
|
Available-for-sale securities, at fair value |
202,497 |
|
|
239,053 |
|
Margin lending, brokerage and other receivables, net |
961,392 |
|
|
376,329 |
|
Loans issued |
1,346,005 |
|
|
826,258 |
|
Fixed assets, net |
78,099 |
|
|
54,017 |
|
Intangible assets, net |
46,771 |
|
|
17,615 |
|
Goodwill |
52,238 |
|
|
14,192 |
|
Right-of-use asset |
34,180 |
|
|
30,345 |
|
Insurance contract assets |
12,728 |
|
|
13,785 |
|
Other assets, net |
88,244 |
|
|
73,463 |
|
TOTAL ASSETS |
7,449,043 |
|
|
5,084,558 |
|
|
|
|
|
||
LIABILITIES AND SHAREHOLDERS’ EQUITY |
|
|
|
||
Securities repurchase agreement obligations |
2,889,173 |
|
|
1,517,416 |
|
Customer liabilities |
2,248,042 |
|
|
1,925,247 |
|
Margin lending and trade payables |
145,804 |
|
|
122,900 |
|
Liabilities from insurance activity |
242,179 |
|
|
182,502 |
|
Current income tax liability |
27,711 |
|
|
4,547 |
|
Debt securities issued |
266,310 |
|
|
60,025 |
|
Lease liability |
34,614 |
|
|
30,320 |
|
Liability arising from continuing involvement |
494,513 |
|
|
440,805 |
|
Other liabilities |
61,447 |
|
|
30,060 |
|
TOTAL LIABILITIES |
6,409,793 |
|
|
4,313,822 |
|
|
|
|
|
||
SHAREHOLDERS’ EQUITY |
|
|
|
||
Preferred stock |
- |
|
|
- |
|
Common stock |
59 |
|
|
59 |
|
Additional paid in capital |
167,465 |
|
|
164,162 |
|
Retained earnings |
903,517 |
|
|
647,064 |
|
Accumulated other comprehensive loss |
(34,845 |
) |
|
(34,000 |
) |
|
|
|
|
||
TOTAL FRHC SHAREHOLDERS' EQUITY |
1,036,196 |
|
|
777,285 |
|
|
|
|
|
||
Noncontrolling interest |
3,054 |
|
|
(6,549 |
) |
TOTAL SHAREHOLDERS’ EQUITY |
1,039,250 |
|
|
770,736 |
|
|
|
|
|
||
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY |
7,449,043 |
|
|
5,084,558 |
|
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND STATEMENTS OF OTHER |
||||||||
COMPREHENSIVE INCOME (Unaudited) |
||||||||
(All amounts in thousands of |
||||||||
|
Three months ended December 31 |
Nine months ended December 31 |
||||||
2023 |
2022 |
2023 |
2022 |
|||||
Revenue: |
|
|
|
|
||||
Fee and commission income |
120,159 |
|
80,883 |
|
330,565 |
|
253,486 |
|
Net (loss)/gain on financial instruments through profit and loss |
(5,089 |
) |
25,456 |
|
77,498 |
|
38,894 |
|
Interest income |
226,445 |
|
80,255 |
|
588,857 |
|
187,817 |
|
Insurance underwriting income |
79,017 |
|
28,557 |
|
181,882 |
|
78,998 |
|
Net gain on foreign exchange operations |
38,825 |
|
20,866 |
|
54,430 |
|
30,014 |
|
Net loss on derivative |
(42,568 |
) |
(21,469 |
) |
(71,795 |
) |
(22,523 |
) |
Other income/ (expense) |
1,845 |
|
(570 |
) |
8,988 |
|
(79 |
) |
|
|
|
|
|
||||
TOTAL REVENUE, NET |
418,634 |
|
213,978 |
|
1,170,425 |
|
566,607 |
|
|
|
|
|
|
||||
Expense: |
|
|
|
|
||||
Fee and commission expense |
42,818 |
|
18,314 |
|
103,116 |
|
60,068 |
|
Interest expense |
131,223 |
|
52,037 |
|
365,650 |
|
132,971 |
|
|
|
|
|
|
||||
Insurance claims incurred, net of reinsurance |
40,989 |
|
17,419 |
|
96,491 |
|
51,586 |
|
Payroll and bonuses |
45,083 |
|
21,610 |
|
116,711 |
|
55,252 |
|
Professional services |
6,217 |
|
5,901 |
|
24,793 |
|
14,174 |
|
Stock compensation expense |
1,039 |
|
2,939 |
|
3,303 |
|
6,519 |
|
Advertising expense |
11,066 |
|
3,730 |
|
27,805 |
|
9,479 |
|
General and administrative expense |
32,106 |
|
16,428 |
|
86,211 |
|
40,943 |
|
(Recovery)/Allowance for expected credit losses |
(3,526 |
) |
24,140 |
|
15,462 |
|
30,294 |
|
|
|
|
|
|
||||
TOTAL EXPENSE |
307,015 |
|
162,518 |
|
839,542 |
|
401,286 |
|
|
|
|
|
|
||||
INCOME BEFORE INCOME TAX |
111,619 |
|
51,460 |
|
330,883 |
|
165,321 |
|
|
|
|
|
|
||||
Income tax expense |
(15,544 |
) |
(5,069 |
) |
(51,408 |
) |
(26,567 |
) |
|
|
|
|
|
||||
INCOME FROM CONTINUING OPERATIONS |
96,075 |
|
46,391 |
|
279,475 |
|
138,754 |
|
|
|
|
|
|
||||
INCOME BEFORE INCOME TAX EXPENSE OF DISCONTINUED OPERATION |
- |
|
13,667 |
|
- |
|
14,467 |
|
|
|
|
|
|
||||
Income tax benefit/(expense) of discontinued operations |
- |
|
2,342 |
|
- |
|
(4,538 |
) |
|
|
|
|
|
||||
INCOME FROM DISCONTINUED OPERATIONS |
- |
|
16,009 |
|
- |
|
9,929 |
|
|
|
|
|
|
||||
NET INCOME |
96,075 |
|
62,400 |
|
279,475 |
|
148,683 |
|
|
|
|
|
|
||||
Less: Net loss attributable to noncontrolling interest in subsidiary |
(293 |
) |
(464 |
) |
(842 |
) |
(1,508 |
) |
|
|
|
|
|
||||
NET INCOME ATTRIBUTABLE TO COMMON SHAREHOLDERS |
96,368 |
|
62,864 |
|
280,317 |
|
150,191 |
|
|
|
|
|
|
||||
OTHER COMPREHENSIVE INCOME |
|
|
|
|
||||
Change in unrealized gain/(loss) on investments available-for-sale, net of tax effect |
1,486 |
|
(54 |
) |
5,893 |
|
2,309 |
|
Reclassification adjustment for net realized (loss)/gain on available-for-sale investments disposed of in the period, net of tax effect |
(1,881 |
) |
320 |
|
(3,145 |
) |
197 |
|
Foreign currency translation adjustments |
28,100 |
|
(5,611 |
) |
(3,593 |
) |
(301 |
) |
OTHER COMPREHENSIVE INCOME/(LOSS) |
27,705 |
|
(5,345 |
) |
(845 |
) |
2,205 |
|
|
|
|
|
|
||||
COMPREHENSIVE INCOME BEFORE NONCONTROLLING INTERESTS |
123,780 |
|
57,055 |
|
278,630 |
|
150,888 |
|
|
|
|
|
|
||||
Less: Comprehensive loss attributable to noncontrolling interest in subsidiary |
(293 |
) |
(464 |
) |
(842 |
) |
(1,508 |
) |
|
|
|
|
|
||||
COMPREHENSIVE INCOME ATTRIBUTABLE TO COMMON SHAREHOLDERS |
124,073 |
|
57,519 |
|
279,472 |
|
152,396 |
|
|
|
|
|
|
||||
EARNINGS PER COMMON SHARE (In |
|
|
|
|
||||
Earnings from continuing operations per common share - basic (Restated) |
1.65 |
|
0.79 |
|
4.79 |
|
2.37 |
|
Earnings from continuing operations per common share - diluted (Restated) |
1.63 |
|
0.78 |
|
4.73 |
|
2.33 |
|
|
|
|
|
|
||||
Earnings/(loss) from discontinued operations per common share - basic |
- |
|
0.27 |
|
- |
|
0.17 |
|
Earnings/(loss) from discontinued operations per common share - diluted |
- |
|
0.27 |
|
- |
|
0.17 |
|
|
|
|
|
|
||||
Earnings per common share - basic (Restated) |
1.65 |
|
1.06 |
|
4.79 |
|
2.54 |
|
Earnings per common share - diluted (Restated) |
1.63 |
|
1.05 |
|
4.73 |
|
2.50 |
|
|
|
|
|
|
||||
Weighted average number of shares (basic) |
58,578,691 |
|
58,678,730 |
|
58,557,577 |
|
58,642,637 |
|
Weighted average number of shares (diluted) |
59,289,256 |
|
59,522,701 |
|
59,287,086 |
|
59,527,743 |
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20240212551579/en/
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.