Netfonds AG Reports Strong Start to 2024 Despite Missing FY23 Projections

Netfonds AG has published its final FY23 figures, showing gross sales of €193 million, a 9% year-on-year increase but below preliminary estimates of €197 million. The company cited one-off effects, including a canceled software contract and at equity consolidation of investments, as reasons for the shortfall.

EBITDA for FY23 reached €4.9 million, a 24% decrease from the previous year and lower than the anticipated €6.2 million. Operating expenses rose 17% year-on-year to €34.4 million, surpassing the expected €30.8 million. Despite these challenges, the company started 2024 with a record Q1 revenue of €56 million, exceeding estimates.

The company attributes its Q1 growth to increased assets under custody (AuC), which grew by 19% year-on-year to €25.1 billion. Net sales rose to €9.5 million, up 18% from the previous year. EBITDA for Q1 also improved significantly, reaching €0.9 million.

Looking ahead, Netfonds expects continued growth supported by its proprietary 360° finfire platform, which simplifies the selling and management of insurance products. The company maintains a target price of €73.00, reaffirming its "Buy" recommendation.