Platform provider, Praemium has reported a positive momentum in for its Australian business in the H1 2019, underpinned by a significant 122% growth in net profit after tax (NPAT) to $1.4 million.
At the same time, revenue rose 13% year-on-year, with platform revenues going up by 22% and portfolio services increasing 6% due to the growth in virtual managed account (VMA), the firm said.
While EBIDTA (earnings before interest, taxes, depreciation and amortisation) for Australian business improved by 31% and stood at $8.5 million, the international EBIDTA loss decreased by 1% to $1 million, comprising UK’s EBITDA loss of $0.6 million and Asia’s EBITDA loss of $0.4 million.
The firm said that although Asia’s EBIDTA loss decreased to $0.4 million, the revenue increased by 24% compared to the prior reporting period driven by an increase in WealthCraft CRM and planning software licences in 2019.
Praemium’s chief executive, Michael Ohanessian commenting on the results said there were two major business trends in 2019 which included the rise of the firm’s VMA administration services and a significant uplift across the firm’s international business.
“Our SaaS reporting product, VMA, has always been the benchmark in accurate portfolio reporting, and the expansion into administrating these portfolios on behalf of adviser firms has been a great step forward for the business,” he said.
“Praemium continues to deliver on its strategic initiatives with its next-gen integrated managed accounts platform. 2020 will be an exciting year as we build upon the great strides we took in 2019.”