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Highlights
- Hub24's share price jumps 10.4%, reaching AUD89.79 after strong earnings report.
- Underlying NPAT increases 40%, with revenue up 25% year on year.
- Fully franked interim dividend rises by 30% from last year’s interim payout.
Shares of Hub24 Ltd (ASX:HUB) soared on Tuesday, climbing 10.4% to AUD89.79, a remarkable rise from yesterday’s closing price of AUD81.35. The fintech company, which operates in the Australian financial services sector, has demonstrated impressive growth, with its share price up a stunning 139.3% over the past year. This surge comes on the heels of the company’s strong financial performance for the first half of FY 2025 (1H FY 2025), which was released to the market recently.
The surge in Hub24's share price is attributed to the release of the company’s half-year results, which highlighted strong growth in earnings, revenue, and profitability. For the six months ending December 31, Hub24 reported a 41% year-on-year increase in underlying EBITDA, totaling AUD77.6 million. The company also saw a substantial 25% rise in total revenue, which reached AUD195.2 million.
Net profit after tax (NPAT) also saw significant growth, with underlying NPAT increasing by 40% to AUD42.6 million. Statutory NPAT, which includes one-off items, posted an even higher rise of 54%, amounting to AUD33.2 million. This growth reflects the company's solid performance across its operations and a favorable environment for the fintech sector.
Investors have also reacted positively to the company’s decision to declare an interim dividend of 24.0 cents per share, up 30% from the 2024 interim dividend. The dividend was fully franked, providing investors with tax benefits, making it an attractive feature for income-seeking shareholders.
In addition to these financial highlights, Hub24’s total funds under administration (FUA) grew to AUD120.9 billion, up from AUD110.5 billion a year earlier. Platform FUA, which refers to the funds managed through Hub24's investment platform, grew to AUD98.9 billion, driven by record half-year net inflows of AUD9.5 billion. This represented a 31% increase in platform inflows compared to the same period in FY 2024.
Hub24’s solid financial performance and strong platform inflows underscore the company’s position as a leader in the Australian fintech space. The company offers a range of investment management and financial advice solutions through its proprietary platform, which has gained increasing popularity among investors and financial advisers alike.
In a broader market context, the S&P/ASX 200 Index has gained 11.1% over the past year, making Hub24’s 139.3% share price surge all the more impressive. As the company continues to expand its platform and increase its market share, its outlook for the remainder of FY 2025 remains positive.
