Strong business performance and record revenue and earnings in the third quarter of 2024

PRESS RELEASE

Strong business performance and record revenue and earnings in the third quarter of 2024

●    Continued dynamic growth in the third quarter of 2024
●    Positive development in all business divisions
●    Strong growth in Asset Management

Hamburg, 18 November 2024 - Netfonds AG (ISIN: DE000A1MME74), a leading platform for administration, advisory and regulation for the financial industry, reports a strong business performance for the Group in the first three quarters of 2024. 

With gross revenue of EUR 56.2 million (Q3 2023: EUR 48.4 million, +16.1%), the Netfonds Group maintained its high level of growth in the third quarter of 2024. The record net revenue of EUR 10.3 million in the third quarter (Q3 2023: EUR 8.5 million, +21.1%) underlines this positive momentum. EBITDA reached EUR 1.9 million in the third quarter (Q3 2023: EUR 1.3 million, +46.6%). It also includes a one-off charge of EUR 0.4 million from the reorganisation of the insurance division. 

Gross revenue in the first nine months of 2024 totalled EUR 168.6 million (9M 2023: EUR 141.7 million, +19.0%), while net revenue amounted to EUR 31.1 million (9M 2023: EUR 26.1 million, +19.3%). EBITDA totalled EUR 4.8 million after nine months (9M 2023: EUR 3.2 million, +52.7%) despite the continued high level of investment in the finfire platform and the associated costs. 

Dynamic growth across all business divisions

Growth in the third quarter resulted from almost all relevant business areas. The Investment and Asset Management segment reached a new record level at the end of the quarter with combined assets totalling EUR 27.2 billion. This represents an increase of 19.8% compared to the previous year (9M 2023: EUR 22.7 billion). The strong business performance is also based on the continued inflow of funds in the custody business via the finfire platform and in wealth management.

In asset management and wealth management, assets increased by around EUR 700 million over the course of the year. The number of new customers, new investors and new sales partners remained at a very high level and forms the basis for future growth. 

The combined assets under management of wealth management and the Netfonds Group own fund-based asset management also reached a new all-time high of around EUR 3.7 billion and generated record income.

The insurance division also developed positively in the third quarter and in the first nine months with growth of around 10%. By implementing additional functions in the finfire platform, the business volume will be even more dynamically scalable in future.

Scaling of the finfire platform supports positive company development

"The further development and implementation of new functions in the finfire platform continues to pay off," says Martin Steinmeyer, CEO of Netfonds AG. "In addition, we increased net revenue by over 20% in the past quarter as an indicator of the positive business development. In the coming quarters, our focus will not only be on further growth but also on increasing efficiency and optimising costs."

Outlook for the rest of the financial year

In light of the business performance in the first nine months of this year, the Executive Board confirms the business forecast for the full year 2024, as already published with the presentation of the half-year results. 

The key business indicators for the third quarter and the first nine months of 2024 are as follows:

Overview Q3 2024 / Q3 2023
 

in EUR million *	Q3 2024	Q3 2023	Development
Gross consolidated revenue	56.2	48.4	+16.1%
Net consolidated revenue	10.3	8.5	+21.1%
EBITDA	1.9	1.3	+46.6%
EBITDA margin / net revenue	18.4%	15.1%	n.a.
EBIT	1.3	0.5	+136.0%
EBT	1.2	0.4	+180.8%

* Rounded

Overview 9M 2024 / 9M 2023
 

in EUR million *	9M 2024	9M 2023	Development
Gross consolidated revenue	168.6	141.7	+19.0%
Net consolidated revenue	31.1	26.1	+19.3%
EBITDA	4.8	3.2	+52.7%
EBITDA margin / net revenue	15.5%	12.1%	n.a.
EBIT	3.0	1.0	+204.7%
EBT	2.9	1.0	+201.2%
Assets under Administration	27.2 billion	22.7 billion	+19.8%

* Rounded

Further information on the Netfonds Group and its affiliated subsidiaries can be found at www.netfonds.de.

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Contact 
Netfonds AG 
Heidenkampsweg 73 
20097 Hamburg 
Germany

Investor Relations
Philip Angrabeit
Phone: +49 40 822 267 142
E-mail: pangrabeit@netfonds.de

About the Netfonds Group
The Netfonds Group is a leading platform for administration, consulting and regulation for the German financial industry. Under the finfire brand, the company provides its customers and partners with a cloud-based technology platform for the complete processing and administration of business transactions. Netfonds' customers thus benefit from one of the most modern software solutions on the market, which significantly simplifies the advisory process, makes it secure and enables target group-specific advice. The shares of Netfonds AG are listed in the m:access segment of the Munich Stock Exchange and can be traded via XETRA.