Freedom Holding Corp. announces financial results for second quarter of fiscal year 2022 ended September 30, 2021

09.11.21 14:13
/KASE, November 9, 2021/ – Freedom Holding Corp. (USA), whose shares are officially listed on Kazakhstan Stock Exchange (KASE), has provided KASE with the following press release dated November 8, 2021: quote Freedom Holding Corp. (hereinafter referred to as the "Holding") reports financial results for the second quarter of the fiscal year 2022 ended September 30, 2021. Key indicators for the specified period: 1. For the three months ended September 30, 2021 and 2020, the Holding's revenue was $313 million and $70 million, respectively. The increase in revenue by $243 million, or 349%, was mainly due to an increase in income from securities for the quarter by 2.011%, or by $167 million, from $8 million to $175 million, and also due to an increase in fee and commission income by 115%, or by $62 million, from $54 million to $116 million. The Holding's management believes that the increase in income from securities transactions in the amount of $179 million is a one-off event associated with the revaluation and implementation of a large financial investment. This increase in income from transactions with securities in the current quarter does not indicate a possible increase in indicators in future periods. 2. The expenses of the Holding increased by $35 million, or 85%, for the following reasons: a)an increase in operating expenses by $21 million mainly due to an increase in salary costs as a result of the expansion of the Holding's activities through acquisitions and recruitment of employees, an increase in the cost of share-based payments as a result of the issuance of stock grants to key employees, and also due to an increase in expenses for advertising and professional services as a result of business expansion; b) an increase in interest expenses by $11 million was mainly due to an increase in interest expenses on customers' bank accounts, an increase in expenses related to short-term financing raised through repurchase agreements on securities; c)an increase in commission expenses by $3 million due to an increase in the number of clients and the volume of transactions they make. 3. For the three months ended 30 September 2021 and 2020: a)the net profit of the Holding amounted to $205 million and $24 million, respectively; b) earnings per share of the Holding, calculated on the basis of the weighted average number of shares of 59 and 58 million shares, amounted to $3.44 and $0.4, respectively; c)other comprehensive income was $205 million and $13 million, respectively. 4. During the three months ended September 30, 2021, the assets and liabilities of the Holding increased by $373 thousand and $162 thousand, respectively. unquote The full press release is available on KASE website – https://kase.kz/files/emitters/US_FRHC/us_frhc_reliz_081121_1.pdf [2021-11-09]