Freedom Holding Corp. Achieves Record Revenues and Expands Globally in 2024

Freedom Holding Corp. [NASDAQ: FRHC], the Nasdaq-listed diversified financial services company from Kazakhstan, has lived through interesting times during its almost 16 years of history.

The company, Freedom Holding Corp., is focused on international expansion, growing its banking and insurance segment, and building a unique ecosystem that includes investing in start-ups and new technologies. Its ambitious long-term strategy has led to record-breaking revenues of $1.6 billion for fiscal year 2024, up 105% on the previous year.

Freedom Holding Corp. Delivers Record-Breaking Financial Performance

“We have exceeded the revenue threshold of over a billion dollars, and despite investing heavily in our development, we remained profitable,” says Timur Turlov, the company founder and CEO.

In the future, if the growth rate continues, Freedom Holding Corp. could be included in the Standard & Poor’s 500, a stock market index that tracks the performance of the 500 largest publicly traded companies in the United States. However, to qualify for the S&P 500, Freedom will need to reach a market capitalization of at least $12 billion.

The current company capitalization is approximately $4.81 billion, representing a 455% increase since listing on Nasdaq. Timur Turlov noted that the shareholders who invested in the business through private placement in 2018 did exceptionally well.

The Freedom Holding Corp. also recently announced an annual net income growth of 82%, reaching $375 million, while assets grew 63% to $8.301 billion.

Expanding Shareholder Base and Cashback Initiatives

Now Freedom has tens of thousands of shareholders, and the number is expected to grow, as it offers any individual paying with a Freedom Bank card or engaging in other activities within its ecosystem a share of the profits through cashback. The cashback can be converted into the new Freedom currency, which in turn can be converted into shares of Freedom Holding Corp (FRHC), making anyone a shareholder.

“It is a significant advantage when your clients are also your shareholders, as it allows you to perform certain miracles – develop trust and preserve an innovative spirit,” Turlov believes.

Freedom is much more than just brokerage services; it is one of Kazakhstan’s largest ecosystems, according to the company’s CEO Timur Turlov.

Freedom Holding Corp On Track For Major Growth

Freedom Holding Corp is experiencing rapid growth in its banking and insurance segments.

“Now our non-brokerage business represents approximately 20% of our total operations, with the majority of our revenue generated from insurance services, banking products, and our non-financial businesses, including payment processing and lifestyle services,” Turlov comments.

“For our European business, which serves clients from Western Europe, we already have reliable payment partners such as Citibank and Euroclear. In the brokerage sector, Freedom is in direct competition with the largest European neobrokers,” Turlov states.

Timur Turlov remains optimistic about Kazakhstan’s economy, although loans are still incredibly expensive due to high interbank rates. Inflation in Kazakhstan is down to 8%, the National Bank will inevitably cut the key interest rate, and cheaper loans offer new opportunities for entrepreneurship.

“In Kazakhstan, Freedom Bank ranks eighth in terms of the number of customers, but was ranked fourth as the most trustworthy bank. We are getting a record number of customers and we feel that we can grow even faster if we can attract investors to expand our banking business and provide very high-quality loans,” says Timur Turlov.

As a 70% shareholder, he’d be very interested in dividends, but it seems better to postpone the good life for a while because there are growth prospects that will take the holding there.

Investment in Start-Ups and Fintech Ecosystem

Turlov explained that by raising about a billion dollars of capital for the bank, it could easily double its balance sheet in terms of loans next year.

“We are now preparing to open a bank in Tajikistan. This is definitely not the last bank we will open in Central Asia,” Timur Turlov said.

Diversification through start-up investments has been and will remain on the company’s agenda as it continues to build a full-fledged fintech ecosystem. Some thought the holding company was making strange investments, but it has all paid off, according to Timur Turlov.

“For example, Freedom invested in Ticketon, an online ticket ordering system, during the COVID-19 pandemic, and it will actually make a full return next year,” Turlov said.

In fiscal year 2024, 13 companies joined the holding, including Aviata, Chocotravel and Arbuz services, Freedom Telecom operator, Freedom Media platform and others.

Freedom has already invested $150 million in various start-ups and plans to invest further in innovative companies and its core business in new markets including Uzbekistan, Armenia, Azerbaijan, UAE, Germany, Greece, Spain, France, Poland and the UK.

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(Featured image by Essow K via Pexels)

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