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