Freedom Holding Corp. Reports Excellent Q1 FY2025 Results And Continues Expansion
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Freedom Holding Corp. (FRHC), the Nasdaq-listed diversified financial services company headquartered in Almaty, has reported strong results for the first quarter of fiscal year 2025 while continuing its global expansion. For the first quarter ended June 30, 2024, the company reported revenues of $451 million, an increase of 43% over the same period last year. The company also increased its investment in the growth and development of its fintech ecosystem by 77%, to a total of $409 million.
Freedom Holding Corp. CEO and founder Timur Turlov noted that the company is committed to reinvesting profits in its continued expansion of the fintech ecosystem, which is driving positive results.
Freedom's Q1 FY2025 report highlighted several operational milestones, including the expansion of its global workforce to over 6,800 employees, up from 5,100 in the same period last year. The company has also strengthened its board of directors with international experts—Dr. Kairat Kelimbetov, Andrew Gamble, and Philippe Vogeleer—who bring diverse global experience to support the company's growth strategy.
"We continue to position our company for success by making strategic investments to accelerate our organic growth," said Timur Turlov.
Digital innovation, including the launch of Freedom Bank KZ's mobile banking SuperApp, also marked a decisive step in Freedom Holding's fintech development, according to the report.
The company's banking segment saw a slight decline in loans, but a significant increase in deposits. Meanwhile, the insurance segment saw a significant increase in active contracts, driven by new product offerings and expanded sales efforts in Kazakhstan.
"The largest contributor to our top line was interest income of just over $226 million, followed by underwriting income of $129 million and fee and commission income of $115 million. We were also pleased to see an increase in the number of brokerage accounts to 532,000 from 399,000 in the same period last year, of which active accounts increased by 81%," said the CEO.
In June, the international rating agency S&P Global Ratings revised the outlook for the company's core subsidiaries from negative to positive and the outlook for the company as a whole from negative to stable. Turlov also expressed hope that the first-quarter results would set the stage for another strong year.
Freedom Holding Corp. already provides financial services in 22 countries, including Kazakhstan, the US, Cyprus, Poland, Spain, Uzbekistan, Azerbaijan, and others, but Kazakhstan remains its key market. In Kazakhstan, Freedom is developing its ecosystem, which includes a bank, two brokerages, two insurance companies, and a lifestyle segment. The development of the ecosystem would inevitably lead to net profit growth, Turlov said earlier.
The holding company's total assets amounted to $8.5 billion in Q1 FY2025 up from $8.301 billion at the end of full FY2024.
Freedom Holding Corp. posted record revenues of $1.6 billion for FY2024, up 105% from the previous year, and net profit of $375 million, up 82%.
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