Loading...
•
Dec 31, 2024
Freedom Holding Q3 2025 Earnings Report
Freedom Holding reported a significant increase in total revenues, driven by strong performance in insurance underwriting, trading securities, and fee and commission income.
Key Takeaways
Freedom Holding Corp. reported a substantial increase in total revenues, net, reaching $655.2 million for the three months ended December 31, 2024, up 57% from $418.6 million in the same period last year. This growth was primarily fueled by a 125% increase in insurance underwriting income, a significant net gain on trading securities, and a 19% rise in fee and commission income. Despite the revenue growth, net income decreased by 19% to $78.1 million, compared to $96.1 million in the prior year, mainly due to higher expenses across various categories including fee and commission, insurance claims, payroll, and advertising.
Total revenues, net, increased by 57% to $655.2 million, driven by strong performance across all business segments.
Insurance underwriting income surged by 125% to $177.5 million, primarily due to the expansion of pension annuity and accident insurance operations.
Net gain on trading securities was $89.6 million, a significant improvement from a net loss of $5.1 million in the prior year, mainly due to increased market prices of Kazakhstan sovereign bonds.
Net income decreased by 19% to $78.1 million, primarily due to substantial increases in operating expenses, including fee and commission, insurance claims, payroll, and advertising.
Freedom Holding
Freedom Holding
Forward Guidance
The company plans to finance capital expenditures for its telecommunications and media businesses primarily using own funds and borrowings, including vendor financing and proceeds from a $200 million U.S. dollar domestic bond placement. The company intends to retain future earnings to fund operations, development, and expansion, and does not anticipate paying cash dividends in the foreseeable future.
Positive Outlook
- Strategic plan to expand into the telecommunications market in Kazakhstan through Freedom Telecom subsidiary.
- Plans to finance capital expenditures for new business areas with a combination of own funds and borrowings.
- Completed a $200 million U.S. dollar domestic bond placement to support liquidity and growth.
- Established Freedom Media as a subsidiary to provide media content in Kazakhstan and Central Asia.
- Focus on brand visibility and enhanced marketing efforts to drive growth.
Challenges Ahead
- Specific amount of capital expenditure for telecommunications business is currently uncertain and subject to revisions.
- No anticipated cash dividends on common stock in the foreseeable future as earnings will be retained for business expansion.
- The company's strategy and budget for Freedom Telecom are currently being reassessed and are subject to material revisions.
- The company's ability to raise additional capital on acceptable terms is not assured.
- Market events beyond the company's control could significantly impact liquidity, capitalization, and projected return on investment.