Hargreaves Lansdown Reports Lower-than-Expected Q1 Revenue

Hargreaves Lansdown, the retail-investment platform, announced a smaller-than-expected increase in revenue for the first quarter of fiscal 2024. Despite experiencing lower share-dealing volumes due to softer investor confidence, the company managed to offset this with net interest margin growth.

Q1 Revenue

During the three months ended on September 30, Hargreaves Lansdown generated £183.8 million ($223.1 million) in revenue. While this marked an improvement from the £162.9 million reported in the same period last year, it fell below the estimate of £186.6 million predicted by analysts surveyed by Visible Alpha.

Net New Business

Hargreaves Lansdown disclosed that it recorded approximately £600 million in net new business due to moderated flows across the market. This is a decrease from the £700 million reported in the previous year's Q1 and falls short of the consensus expectations of £1.1 billion.

Assets Under Administration

The company also revealed that its assets under administration at the end of the quarter amounted to £134.8 billion, slightly down from £134.0 billion recorded three months prior. Analysts had anticipated an increase to £135.6 billion.

Investor Behavior

Reflecting on the situation, Chief Executive Dan Olley stated, "Clients are looking to invest more in cash than risk-based investments."