Praemium reported net revenue growth of 25 per cent to $39.2 million for the first half of 2022, and a net loss of $2.6 million, compared to a net profit of $2.8 million a year earlier.
Underlying EBITDA inched up 6 per cent to $7.5 million, with full year EBITDA said to be on track to reach between $16.5 million and $18.5 million.
“The first half of FY2022 saw continued strong growth in revenue, reflecting the ongoing success of our investments in people and technology, including the recent acquisition of Powerwrap,” said CEO Anthony Wamsteker.
“Following another half year in which we significantly expanded the size of our team in order to further improve the underlying proprietary technology and client service levels, we are confident that our strong growth will continue.”
Praemium’s Australian business saw revenue increase by 21 per cent to $30.3 million on the first half of FY2021. Australian platform FUA added 28 per cent to $21.1 billion, with Australian platform revenue increasing 31 per cent to $21.7 million.
Portfolio services revenue increased 7 per cent from the growth of VMA and VMA Admin Services (VMAAS) portfolios.
Looking forward, Mr Wamsteker said that the sale of Praemium’s international business segment to Morningstar allows a “dedicated focus” on the firm’s home market in Australia.
“The ability to now focus exclusively on the Australian platform market at a time of a major shift from incumbents to independent challengers and in the expectations of advisers and clients regarding the range of assets to be managed in one place, creates strong alignment between our strategy and our opportunity.”
