Freedom Holding Corp. reports a 57% revenue increase for Q4 2024, driven by gains in trading securities and insurance underwriting.
Quiver AI Summary
Freedom Holding Corp. has reported a strong financial performance for the quarter ending December 31, 2024, showcasing a 57% increase in total revenue, which reached $655.2 million compared to $418.6 million in the same quarter of 2023. This growth is attributed to significant gains in trading securities and a 125% increase in insurance underwriting income. Total assets also rose to $9.1 billion from $8.3 billion earlier in the year. Despite the revenue surge, the company's net income decreased by 19% to $78.1 million due to rising operational costs. All business segments reported positive growth, with banking revenue up 47%, insurance revenue doubling, and brokerage gaining 29%. The company continues to expand its services and has recently entered the telecommunications sector by acquiring EliteCom.
Potential Positives
- Freedom Holding Corp. reported a 57% increase in total revenue, reaching $655.2 million, which indicates strong financial growth compared to the previous year.
- Total assets increased to $9.1 billion, showcasing the company’s expanding financial base.
- The company’s insurance underwriting income surged by 125% to $177.5 million, reflecting successful strategic growth in this segment.
- Revenue diversification across insurance and banking segments has created a more stable and balanced ecosystem for the company, reducing reliance on brokerage income.
Potential Negatives
- Despite a significant increase in total revenue, the company's net income declined by 19%, indicating profitability challenges amidst revenue growth.
- Total expenses surged to $556.9 million, more than doubling from the previous year, which may raise concerns about cost control and operational efficiency.
- The reliance on increased fees and commission expenses to grow revenue could pose long-term sustainability risks, especially in competitive markets.
FAQ
What were Freedom Holding Corp.'s revenue results for Q4 2024?
The company reported a total revenue of $655.2 million, a 57% increase compared to Q4 2023.
How much did total assets increase for Freedom Holding Corp.?
Total assets rose from $8.3 billion to $9.1 billion as of March 31, 2024.
What contributed to the revenue surge in Freedom Holding Corp.?
The surge was primarily due to a net gain on trading securities and increased insurance underwriting income.
What was the net income for Freedom Holding Corp. in Q4 2024?
Net income declined by 19% to $78.1 million compared to $96.1 million in the previous year’s quarter.
What new acquisition did Freedom Holding Corp. make in 2024?
In October 2024, the company acquired EliteCom, a telecommunications services company, for $3 million.
Disclaimer: This is an AI-generated summary of a press release distributed by GlobeNewswire. The model used to summarize this release may make mistakes. See the full release here.
$FRHC Insider Trading Activity
$FRHC insiders have traded $FRHC stock on the open market 11 times in the past 6 months. Of those trades, 0 have been purchases and 11 have been sales.
Here’s a breakdown of recent trading of $FRHC stock by insiders over the last 6 months:
- AZAMAT YERDESSOV (Freedom Life Chief Exec. Ofc.) has made 0 purchases and 4 sales selling 17,500 shares for an estimated $2,037,190.
- ROBERT WOTCZAK (Pres & CEO - Prime Executions) has made 0 purchases and 5 sales selling 10,000 shares for an estimated $938,539.
- KAIRAT BAKIBAYEVICH AKHMETOV (see below*) has made 0 purchases and 2 sales selling 6,100 shares for an estimated $734,300.
To track insider transactions, check out Quiver Quantitative's insider trading dashboard.
$FRHC Hedge Fund Activity
We have seen 27 institutional investors add shares of $FRHC stock to their portfolio, and 22 decrease their positions in their most recent quarter.
Here are some of the largest recent moves:
- SPARTA 24 LTD. removed 26,478 shares (-100.0%) from their portfolio in Q3 2024, for an estimated $2,509,055
- BALYASNY ASSET MANAGEMENT L.P. added 24,861 shares (+inf%) to their portfolio in Q3 2024, for an estimated $2,355,828
- BANK OF AMERICA CORP /DE/ added 13,155 shares (+202.3%) to their portfolio in Q3 2024, for an estimated $1,246,567
- AMERICAN CENTURY COMPANIES INC added 12,204 shares (+inf%) to their portfolio in Q3 2024, for an estimated $1,156,451
- CITADEL ADVISORS LLC removed 9,793 shares (-58.0%) from their portfolio in Q3 2024, for an estimated $927,984
- MARSHALL WACE, LLP removed 8,193 shares (-100.0%) from their portfolio in Q3 2024, for an estimated $776,368
- SUSQUEHANNA INTERNATIONAL GROUP, LLP removed 7,902 shares (-56.0%) from their portfolio in Q3 2024, for an estimated $748,793
To track hedge funds' stock portfolios, check out Quiver Quantitative's institutional holdings dashboard.
Full Release
NEW YORK, Feb. 07, 2025 (GLOBE NEWSWIRE) --
Freedom Holding Corp
. (NASDAQ: FRHC), a U.S.-based financial services company, has announced its financial results for the quarter ended December 31, 2024. The holding company reported a 57% increase in total revenue, with revenues reaching $655.2 million compared to $418.6 million in the same quarter of 2023. Total assets increased to $9.1 billion from $8.3 billion as of March 31, 2024.
The company’s revenue has surged due to the increase of net gain on trading securities, which has risen from a $5.1 million loss to a $89.6 million gain. Additionally, company’s performance was significantly bolstered by its insurance underwriting income, which surged by 125% to $177.5 million, reflecting the expansion of pension annuities and accident insurance operations. The banking segment also demonstrated robust growth, with a 47% increase in revenue compared to the same period last year.
"In the era of globalization, we are building the Freedom ecosystem as a unified platform where diverse business segments — ranging from banking and insurance to lifestyle services — seamlessly interact to serve over 7 million clients. Recently, the holding’s revenue has become significantly more diversified; while brokerage was once the primary income driver, revenue is now evenly distributed across the insurance and banking segments, creating a more stable and balanced ecosystem," Timur Turlov, the founder of Freedom Holding, said.
Segment Performance
Brokerage
: Revenue increased by 29% to $213.3 million, driven by an increase in net gains on trading securities and fee and commission income.
Banking:
Revenue rose by 47% to $206.4 million, supported by net gains on trading securities and derivatives.
Insurance:
Revenue doubled to $197.8 million, reflecting strategic growth in insurance underwriting income.
Other Segments:
Revenue grew by 120% to $37.7 million, largely due to net gains on foreign exchange operations.
Despite strong revenue growth, the company's net income declined by 19% to $78.1 million, compared to $96.1 million in the previous year’s quarter. This was due to increased fees and commission expenses, general and administrative expenses, payroll and bonuses, advertising costs and stock-based compensation expenses. Total expenses for the quarter amounted to $556.9 million, up from $307.0 million in Q3 2024 fiscal year.
During the same period, fee and commission income increased from $120.2 million to $143.4 million.
Freedom Holding Corp. remains committed to expanding its product portfolio, improving operational efficiencies, capitalizing on emerging market opportunities, and considering selective acquisitions. In October 2024, the company acquired EliteCom, a telecommunications services company, for $3 million. The acquired licenses and assets will be used to develop Freedom Holding's own telecommunications business.
About Freedom Holding Corp.
Freedom Holding Corp. is an international financial and investment services group specializing in capital markets, asset management, and brokerage services.
Freedom Holding Corp.'s common shares are registered with the United States Securities and Exchange Commission and trade on the Nasdaq Capital Market under the symbol FRHC. The Company has its principal market of operation in Kazakhstan and operates through its subsidiaries in 22 countries. With a strong presence in Central Asia, Europe, and the U.S., the company is committed to delivering innovative financial products to individual and institutional investors.
For more information, visit
www.freedomholdingcorp.com
Natalia Kharlashina
PR Department
Freedom Holding Corp.
prglobal@ffin.kz
This article was originally published on Quiver News, read the full story.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
