Praemium’s profit up in H1
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.”
AUTHOR
Oksana Patron
Recommended for you
Licensing regulation should prioritise consumer outcomes over institutional convenience, according to Assured Support, and the compliance firm has suggested an alternative framework to the “licensed and self-licensed” model.
The chair of the Platinum Capital listed investment company admits the vehicle “is at a crossroads” in its 31-year history, with both L1 Capital and Wilson Asset Management bidding to take over its investment management.
AMP has settled on two court proceedings: one class action which affected superannuation members and a second regarding insurer policies.
With a large group of advisers expecting to exit before the 2026 education deadline, an industry expert shares how these practices can best prepare themselves for sale to compete in a “buyer’s market”.
