Insights

How did the Netwealth (ASX:NWL) share price fare last earnings season?

Netwealth Group will deliver its full 2021 financial year results tomorrow.
The post How did the Netwealth (ASX:NWL) share price fare last earnings season? appeared first on The Motley Fool Australia. –

The Netwealth Group Ltd (ASX: NWL) share price is edging lower today, down 1.56% at time of writing.

The S&P/ASX 200 Index (ASX: XJO) is falling too, down 0.8%.

The Netwealth share price is being closely watched as the ASX 200 fintech company gets set to deliver its full 2021 financial year results tomorrow.

With that in mind, we take a look back to its FY20 results, and how the Netwealth share price responded.

What did Netwealth Group report for FY20?

Netwealth’s share price gained 0.9% on 18 August 2020, the day it reported strong earnings growth in its FY20 results.

Here are some of the key metrics the company announced:

Underlying earnings before interest, tax, depreciation and amortisation (EBITDA) increased 24.8% to $64.8 million.
Underlying net profit after tax (NPAT) increased 21.7% to $43.8 million.
Total income increased 25.5% to $123.9 million.
Announced a final dividend of 7.8 cents per share, fully franked.

Netwealth’s share price also likely received a bump after it reported its Platform revenue leapt 25.9% year-on-year to reach $121.3 million in FY20.

And the company saw a 35% increase in its funds under administration (FUA), reaching $31.5 billion. FUA inflows in FY20 reached a record $9.1 billion.

Funds under management (FUM) at the time of reporting were $7.3 billion.

Stating it was working to diversify its earnings base, the company also reported an increase in its transaction fee revenues, from 6% to 9%.

On the expenses side of the ledger, operating expenses increased 26.2%. The Group added 68 new employees in FY20, as well as investing in software and IT infrastructure with an eye on future growth.

How has the Netwealth share price performed since then?

Netwealth’s share price closed at $14.10 on the day before releasing its FY20 results. At the current share price of $14.85, that represents a gain of 5.3%.

Year-to-date, shares have been on a bit of a rollercoaster with more downs than ups leaving the share price down 6.2% so far in 2021.

Netwealth has a market cap of $3.6 billion.

The post How did the Netwealth (ASX:NWL) share price fare last earnings season? appeared first on The Motley Fool Australia.

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More reading

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The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Netwealth. The Motley Fool Australia owns shares of and has recommended Netwealth. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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