Freedom Holding Corp. doubles quarterly earnings to $418.6 million

Freedom Holding Corp. (FRHC), the founder of Freedom Finance Europe, on Friday released its financial results for the third quarter of the fiscal year 2023, ending on December 31, 2023, reporting an impressive increase in revenue.

According to the report, during this period, the company’s portfolio revenue reached $418.6 million, nearly doubling from the same quarter of the previous year ($214 million).

The net revenue of the company amounted to $96.4 million, marking a 53 per cent increase compared to the previous year.

The earnings per share (EPS) for FRHC were $1.65, reflecting a 55.6 per cent increase, with an average of 58.6 million shares.

The revenue growth was primarily driven by commissions and interest, as well as the insurance activities of the portfolio company.

Specifically, commission revenue reached $120.2 million (a 49 per cent increase), while interest income increased 2.8 times, reaching $226.4 million.

These increases are attributed mainly to the expansion of operational activities, the growth of its equity portfolio, and the volume of bank loans issued.

Moreover, during the reported quarter, users of the Freedom24 investment platform were more active in their transactions, financing their investments through margin lending.

The revenue from insurance activities of the company reached $79 million, marking a significant 177 per cent increase due to the expansion of its insurance activities.

Freedom Holding Corp.’s expenses amounted to $307 million in the third quarter of the fiscal year 2024, showing an 89 per cent increase, mainly due to the financing of the short-term share repurchase program.

As of December 31, 2023, Freedom Holding Corp.’s total assets had increased to $7.45 billion from $5.09 billion as of March 31, 2023.

The total number of investment accounts on Freedom24 increased to 458,000, up from 370,000 on March 31, 2023, and 250,000 on March 31, 2022.

The growth in customer accounts and the financial assets of the parent company were fueled by the geographical expansion of Freedom Finance Europe, which opened representative offices in six additional countries in 2023.

Freedom Finance Europe includes offices in Germany, France, Italy, Spain, the Netherlands, Austria, Greece, Poland, Bulgaria, and Cyprus.