Shares of Allfunds Group surged 7.5% following the announcement of robust net new money (NNM) from existing clients and record migrations valued at €73 billion, surpassing consensus estimates which were set at €52 billion.
The company’s adjusted EBITDA exceeded expectations by 3%, buoyed by higher revenues in Commission and Net Trading Income (NTI), with an EBITDA margin consistent with previous figures, even after excluding discontinued operations (DO).
The rise in stock value can also be attributed to the newly unveiled share buyback program, which at €250 million represents 8% of the market cap, a move not previously factored into consensus projections. Additionally, Allfunds announced a dividend that beat expectations by 23%.
Analysts have positively reassessed the company’s outlook based on the financial results. A quote from Jefferies analysts highlights the shift in perception: "FY24 results reset the narrative... Any uncertainty around SAN & ISP partnerships has been taken off the table."
