Freedom Holding Corp. (NASDAQ: FRHC) has reported significant growth in its latest quarterly financial results, according to a filing with the U.S. Securities and Exchange Commission for the period from October to December 2023, marking the third quarter of the 2024 fiscal year. The company, which operates a diversified financial and ancillary services ecosystem across Central Asia, Europe, and the U.S., saw its revenue and net income surge by 96% and 54% to $418.6 million and $96 million, respectively.
A considerable portion of Freedom’s revenue, $359 million, was generated in Kazakhstan, its primary market. This figure includes contributions from its bank and insurance operations—Freedom Bank and Freedom Life and Freedom Insurance—as well as from Freedom Finance Global, an international brokerage firm. Notably, the company’s client base expanded by 24,000 to 458,000 accounts by the end of December 2023, marking a 6% increase from the end of September 2023.
The financial services firm also highlighted its achievements in the European market, excluding Eastern Europe, with revenues of $39.5 million for the quarter. As part of its expansion strategy, Freedom has opened new offices in Austria, the Netherlands, Italy, and Bulgaria, extending its global footprint to 18 countries.
Interest income, which accounted for half of Freedom’s total revenue, saw a notable increase of 182% over the previous year, reaching $226.4 million. This growth is attributed to an expansion of the company’s securities portfolio, increased margin loans, and a rise in issued retail banking loans. The insurance segment also experienced significant growth, with income increasing by 177% to $79 million compared to the same period last year.
On the balance sheet, Freedom reported a 47% increase in total assets, reaching $7.449 billion. However, the period also saw a substantial rise in general and administrative expenses, which nearly doubled to $32.1 million, largely due to the company’s sponsorship of nonprofit projects in Kazakhstan.
Founded in 2008 by Timur Turlov, Freedom Holding Corp. has evolved into an international financial services holding company. Its operations encompass a wide range of services, including retail banking, insurance, brokerage services, online payment and ticket booking services, and a smartphone retail network. The company’s recent initiatives include the launch of Freedom Telecom, aiming to become a key player in Kazakhstan’s internet and telecommunications market. This venture was supported by a $200 million bond issuance, intended to fund the construction of telecommunication infrastructure for the deployment of a 5G network across the country.
Freedom Holding Corp. has been publicly traded on the Nasdaq since 2019, with its stock experiencing significant growth over the past five years, outperforming the S&P 500 Index. In November 2023, Standard & Poor’s reaffirmed the long-term credit ratings of Freedom Holding Corp. and its subsidiaries, reflecting the company’s solid financial standing and growth prospects.
