On 9th April 2019, Netwealth Group Limited (ASX: NWL) announced about the ANZ’s preference on NWL’s award-winning administrative services and Platform as a Service (PaaS). ANZ Private can use the platform in its strategy to meet the complex investments needs of its private bank clients and their bankers and advisors. The platform will provide multi-asset, multi-currency investment offering to ANZ Private. It will include discretionary managed portfolios, domestic and international equities and bonds, domestic managed funds, term deposits, foreign currency.
It is expected that ANZ Private will make the platform available to its existing clients, especially in discretionary portfolios. ANZ Private is also expected to introduce further capabilities of the platform to its clients in July 2019. Netwealth looks forward to providing the best innovative support for ANZ Private.
In its half-yearly result, the company reported an increase in its revenue by 19% to $48.2 million in H1 FY19 from $40.5 million in H1 FY18. The platform revenue increased by 18.2% pcp to $47.1 million, and other income increased by 69.7% pcp to $1.1 million in H1 FY19. Its total operating expenses increased by 16.8% pcp to $23.4 million in H1 FY19, which majorly comprised of employee benefits expenses, which grew by 17.6% pcp to $16 million. The underlying EBITDA increased by 21.2% pcp to $24.8 million. Its underlying NPAT increased by 21.2% pcp to $17 million in H1 FY19.
NWL expects that its new business pipeline will grow as well as convert to inflows in the full year 2019 and further. The company is confident that its full-year FUA net inflows for FY19 will be better than FY18 as a significant number of large new clients are transitioning to its platform. It also believes that advisors exiting larger institutions and selecting new platforms will accelerate in the near term. The company sees potential outcomes from the recently announced Royal Commission recommendations. It is well positioned to provide functionality to support the increased regulatory requirements for licensees and advisors.
The company seeks to offer the best service and functionality at a competitive price. It expects that the competitive pricing and larger average account sizes may result in a reduction in revenue to some extent; however, it is focused on growing average revenue per account and developing new revenue streams in the coming times. The group is determined to increase its investment in IT, sales, product, and operation staff levels in H2 FY19. The company’s EBITDA margin for FY19 will be in-line with that of FY18.
On the stock information front, the stock of Netwealth Group closed the day’s trade at A$8.84, up 0.113% with a market capitalisation of ~A$2.1 billion. Its current PE multiple is at 91.88x, and its last EPS was noted at A$0.096. Today, it made day’s high at A$9.35 and day’s low at A$8.835, with a daily volume of 704,553. Its 52 weeks high was at A$9.927 and 52 weeks low at A$5.843, with an average volume of 372,515. Its absolute return for one year, six months and three months are 38.42%, 9.01% and 18.84%, respectively.
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