Freedom Holding Corp. Reports 57% Revenue Increase to $655.2 Million in Latest Quarter

Freedom Holding Corp. reported significant financial performance improvements in its latest quarterly filing, with total revenue reaching $655.2 million for the three months ended December 31, 2024, a 57% increase from $418.6 million in the same period last year. The surge in revenue was primarily driven by a 125% increase in insurance underwriting income, which rose to $177.5 million, and a net gain on trading securities of $89.6 million, compared to a loss of $5.1 million in the prior year. Fee and commission income also saw a 19% increase, totaling $143.4 million, attributed to heightened brokerage and banking activities.

In terms of profitability, the company reported a net income of $78.1 million for the quarter, down from $96.1 million a year earlier. This decline was influenced by increased expenses, which rose to $556.9 million from $307.0 million, largely due to higher fee and commission expenses, insurance claims, payroll, and general administrative costs. The total assets of Freedom Holding Corp. increased to $9.1 billion as of December 31, 2024, up from $8.3 billion at the end of the previous fiscal period.

Strategically, Freedom Holding Corp. has been active in expanding its operations, particularly in the telecommunications sector. The company completed the acquisition of SilkNetCom LLP and EliteCom LLP in September and October 2024, respectively, to bolster its telecommunications capabilities. These acquisitions are part of a broader strategy to develop a digital fintech ecosystem that integrates various financial services with telecommunications offerings.

Operationally, the company reported a substantial increase in customer counts across its segments. As of December 31, 2024, the banking segment had approximately 1.4 million customers, up from 904,000, while the insurance segment grew to 972,000 active contracts from 534,000. The brokerage segment also saw growth, with customer numbers rising to 618,000 from 530,000. The overall employee headcount increased to 7,761, reflecting the company's expansion efforts.

Looking ahead, Freedom Holding Corp. anticipates continued growth driven by its strategic initiatives and market conditions. The company aims to enhance its digital offerings and expand its market presence, particularly in Kazakhstan and Central Asia. However, management acknowledges potential risks, including geopolitical tensions and market volatility, which could impact future performance. The company remains focused on maintaining its capital adequacy and liquidity to support ongoing operations and growth initiatives.