Sat Jun 14 03:40:00 UTC 2025: **News Article:**

**Freedom Holding Corp. Reports Revenue Growth, But Net Income Dips Amid Expansion Efforts**

ALMATY, KAZAKHSTAN – June 14, 2025 – Freedom Holding Corp. (FRHC), a diversified financial services firm with a strong foothold in Kazakhstan and operations spanning Europe, Asia, and North America, has released its annual Form 10-K, revealing a mixed financial performance. While the company reported a significant increase in revenue, net income took a hit due to escalating expenses related to ambitious expansion plans.

For the fiscal year ending March 31, 2025, FRHC announced total revenue of $2,050.5 million, a 23% jump from the previous year. This growth was primarily fueled by increased interest income, fee and commission income, and insurance underwriting income.

However, net income decreased by 77% to $84.5 million. The decline is attributed to higher operating expenses and a higher effective tax rate, largely stemming from the company’s strategic push into new sectors.

“This past year was one of significant growth and strategic realignment for Freedom Holding Corp.,” said a spokesperson for the company. “While we experienced a decrease in net income, this reflects our investments in expanding our digital fintech ecosystem, particularly in telecommunications and media content in Kazakhstan.”

FRHC has realigned its business into four key segments: Brokerage, Banking, Insurance, and Other. Kazakhstan remains the company’s primary market, with significant operations also located in Cyprus and the United States. The company divested its Russian subsidiaries in February 2023.

Key highlights from the report include:

* **SuperApp Launch:** Freedom Bank Kazakhstan launched its “SuperApp,” an all-in-one financial platform integrating banking, payments, and investment services.
* **Telecommunications Entry:** The company expanded into the Kazakhstan telecommunications market with Freedom Telecom.
* **Media Platform Development:** Freedom Media LLP was established to build a streaming platform for Kazakhstan and Central Asia.
* **Insurance Segment Growth:** The acquisition of Freedom Life and Freedom Insurance in 2022 significantly strengthened the company’s insurance offerings.
* **Brokerage Expansion:** FRHC’s brokerage segment has grown to 683,000 retail customer accounts.

Looking ahead, FRHC aims to further expand its regional and global presence, focusing on Central Asia and the Caucasus. The company plans to achieve this through strategic acquisitions and enhancement of its digital financial infrastructure.

However, the report also acknowledges potential risks, including market volatility, regulatory changes, and reputational concerns. Specifically, FRHC identifies the ongoing Russia-Ukraine conflict as a potential risk due to historical business ties and the possibility of secondary sanctions impacting Kazakhstan.

The company is funding its expansion plans through a combination of internal funds and borrowing, including bond issuances. FRHC does not anticipate paying cash dividends in the near future, choosing instead to reinvest earnings in business growth.

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