Praemium reports record first-half earnings on reduced int’l losses
Praemium, The Australia-based financial platform provider, reported a record profit on the six months to the end of December, helped by reduced losses in its international businesses, and “record inflows” in the half.
It said its earnings before interest, tax, depreciation and amortisation totaled A$2.6m (US$1.99m, £1.59m), a 39% increase over the first six months of 2016, on “record” revenue and other income of A$17.2m, a 16% gain on the first half.
EBITDA losses at its Jersey-based international business fell by 34% to A$700,000, and at its Asian international business by 31% to A$800,000, the company said.
As reported last month, Praemium said global funds under administration grew by 29% to A$5.4bn in 2016, following “record inflows in the half”.
Chief executive Michael Ohanessian, pictured, said the half was the sixth in a row to show a profit improvement, as growth in recurring revenue streams was generating “strong incremental margins”.
Praemium, which is listed on the Australian Stock Exchange, last year acquired a UK Self Invested Personal Pension (SIPP) provider, Wensley Mackay, for £600,000. The acquisition was seen as a potentially key move, given the UK’s recent pension reforms. In today’s earnings statement, the company said UK revenue and other income “was up 51%”, of which 2% had come via the just-acquired operation.
To view Praemium’s latest results on the ASX website, click here.
To view a YouTube video posted last month that features Mark Sanderson, head of pensions at Praemium, explaining the company’s UK pensions strategy, click here.