Netfonds AG Posts Strong FY24 Results, Growth Continues

Netfonds AG reported a robust set of preliminary financial results for FY24, surpassing expectations in sales. Gross sales reached €238 million, a 23% year-over-year increase, driven primarily by a substantial 71% growth in the Regulatory & Technology sector. This sector's performance counterbalanced declines in the Wholesale and Miscellaneous businesses.

The company's assets under administration (AuA) grew 19% to €28.3 billion. EBITDA was in line with predictions at €8.4 million, supported by strong topline growth and efficient cost management, despite a 9% rise in operating expenses to €37.6 million, mainly due to increased personnel costs.

Looking ahead, Netfonds' proprietary finfire platform is anticipated to drive continued growth, with projected AuA of €31.8 billion in FY25. The recommendation to buy remains, with a target price of €78.00.