HUB +4.84%: Delivering a great set of results on a day when the market gets clobbered is never going to get the outcome it deserves, however HUB finished up ~5% in a market that fell -1% within a sector that led the decline down by -3.20%. This morning HUB released 1H22 results that were broadly in line at revenues ($81.6m) and well ahead of expectations in terms of underlying EBITDA ($29.7m up 76% YoY) and net profit ($14.2m up 80% YoY). They also increased their Funds Under Administration (FUA) target to $83bn – $92bn by FY24 (previously $63bn – $70bn by FY23. Importantly, margins also rose in an environment where competitors margins fell. Our Shaw Analyst James Bisinella said: HUB has been indiscriminately lumped in with other platform providers who have seen operating expenses track ahead of market expectations, mainly due to aggressive headcount growth (HUB traded down 8% on NWL result). HUB in our view deserves to trade well higher in light of today’s result which beat our estimates whilst the market was likely pricing in a miss, plus platform FUA target was upgraded and platform revenue margins flat.
MM remains long & bullish HUB
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