Hargreaves Lansdown Sees 28% Yearly Increase in Total Revenue for Q3 FY23

Hargreaves Lansdown (HL), a UK investment and online trading firm, today reported its financial results for the three months ended March 31, 2023 (Q3 FY23), showing an increase of 28% on a YoY basis in total revenue for the quarter.

Trading Performance

• Total revenue for the three months totaled £188.1 million, increasing 28% compared to £146.9 million in Q3 FY22. Year-to date revenue came in at £538.1 million, up 23% compared to £438.0 million in the same period of FY22.

• Share dealing volumes recorded 770,000 per month in the quarter, an increase of 23% on a quarterly basis but a decrease of 20% on a yearly basis, mainly due to investor confidence being hit by concerns over the conflict in Ukraine and cost of living issues.

• During the period, the firm delivered £1.6 billion of net new business, 14% higher than £1.4 billion in Q3 FY22, despite moderated flows being seen across the market.

• Active Savings experienced net inflows of £0.7 billion in Q3 FY23, comparing to £0.1 billion in the same period of last fiscal year.

• The number of active client for the quarter increased 23,000 with client retention at 92.0% broadly in line with last year. The number growth of active client amounted to 31,000 in Q3 FY22.

• Asset retention decreased from 91.5% in the prior Q3 to 89.1% this quarter, reflecting the continued need of certain clients for cash withdrawals.

"We delivered net new business of £1.6 billion in the period, up 14% on last year as the combination of changes to the tax landscape, our marketing activity, and ongoing developments in our core propositions generated a call to action for clients in the run up to tax year end. Macroeconomic uncertainty continues but the improved activity demonstrates that as confidence returns, HL is well positioned to grow and support new and existing clients on their investment and savings journeys," commented Chris Hill, Chief Executive Officer at HL.

"During the quarter, we launched a new cash ISA, three new Portfolio Funds and our enhanced Share Exchange service helping clients enable efficient use of their tax allowances. The targeted price reduction we have made to our LISA product and making our Junior ISA fee free demonstrates how we are thinking about specific improvements to help families manage wealth and to help those starting out on their investing journeys."