LONDON (dpa-AFX) - Hargreaves Lansdown plc (HL.L), a digital wealth management service provider, Monday reported that its first-quarter revenue increased 15 percent to 162.9 million pounds from last year's 142.2 million pounds, driven by higher revenue on cash.
Further, the company raised fiscal 2023 revenue margin guidance to 49-52 basis points from previously expected 44-47 basis points. Cash margin guidance increased to 130-150 bps and shares margin guidance decreased to 30-35 bps. All other guidance remains unchanged.
In its trading update, the company said the increase in net interest margin more than offset the reduction in share dealing volumes and the revenue impact of lower year-on-year AUA.
Share dealing volumes have averaged 700,000 per month in the quarter, compared to 861,000 a year ago, with volumes modestly increasing on a monthly basis.
The active client growth was 17,000 in the quarter, compared to 23,000 last year. Client retention was at 92.2 percent, marginally ahead of the last full year's 92.1 percent.
Net new business was 0.7 billion pounds in the quarter, down from prior year's 1.3 billion pounds. Active Savings continues to perform well and has been the recipient of the majority of net new flows.
Closing AUA was 122.7 billion pounds, reflecting adverse market movement across the quarter.
Looking ahead, the company said, 'As we progress through this year, given the uncertain economic environment and market conditions, we remain focused on cost control and investment discipline.'
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