Focus on development
The company continues to see double-digit growth in employment as part of its ongoing expansion. In the April-June 2023 period, revenue rose by 83 percent year over year, reaching 316.2 million dollars. A large portion of this total, 282.8 million dollars, originated from the Central Asia Freedom segment, with Uzbekistan and Kazakhstan as key contributors. The Kazakhstan market remains the company’s core footprint, where the Freedom Holding Corp. CEO, Timur Turlov, is guiding the creation of a comprehensive service ecosystem. A recent announcement shared that Freedom Telecom will be established to expand broadband access and advanced 5G mobile communications.
The revenue within the Kazakhstan segment was distributed as follows: Freedom Bank 115.8 million dollars, Freedom Finance Global 48.3 million dollars, Freedom Finance JSC 26.5 million dollars, and insurance company income 69.6 million dollars. Overall, the Central Asia segment achieved impressive growth, rising 184.6 percent during the reporting period.
The primary driver of revenue growth was a 207.5 percent increase in interest income to 149.3 million dollars, propelled by a larger securities portfolio and a higher volume of bank loans issued. Freedom Holding Corp. reported a 57.5 percent rise in net profit for the period, reaching 67.9 million dollars. Despite concerns that Russia’s asset sale might hurt results, the company quickly diversified and rebuilt its income streams to sustain momentum.
New features in stock
The holding company remains highly active, pursuing new opportunities to broaden both its service lineup and its geographic reach. While Kazakhstan continues to be the central focus, Freedom is expanding into additional markets, with a presence in 16 countries including the United States, Europe, and the Commonwealth of Independent States, and the total number of customer accounts now stands at about 400 thousand.
The American division focuses on investment banking activities, serving as an underwriter for initial public offerings. Obtaining a license to conduct insurance activities from U.S. regulators is challenging, yet Freedom Holding has already completed multiple IPOs and secondary offerings for American companies within the year. This achievement marks a milestone for a Kazakh company pursuing a broader global footprint.
Freedom aims to advance this area further. Notable acquisitions in recent months illustrate this strategy: in February the group acquired Maxim Group, an American investment bank, and in March it acquired LDMicro, a service that organizes conference calls. These transactions broaden the range of services offered to institutional clients and private investors.
There is no success without jealousy
The swift growth of a relatively small company by American standards has attracted attention from competitors. A wave of negative public relations has emerged, with information campaigns that aim to shape perception. The most prominent recent incident involves the Hindenburg Inquiry, which relies on anonymous sources. While some on Wall Street expect thorough fact-checking, the reports about Freedom Holding contain inaccurate elements. The company’s leadership has reiterated that the allegations are unverified and that the annual financial statements have been audited by Deloitte, a respected global firm. Analysts note that Hindenburg faced a substantial loss of credibility, estimated at about 30 million dollars in relation to this matter.
Another notable development includes coverage on CNBC, which has echoed some of the Hindenburg claims. This has prompted investigations by U.S. regulators, with the U.S. Securities and Exchange Commission actively reviewing the situation. Freedom Holding representatives have indicated they have no information about any Department of Justice inquiry. The CNBC report also carried a disclaimer stating that investigations can take years and may not result in charges, which helps explain the lack of formal action to date. The overall takeaway is that sensational headlines do not always translate into real consequences.
In general, Freedom Holding has faced multiple rounds of scrutiny. The American legal team continues to cooperate with authorities, and to date no material charges have been filed. Regulators make decisions based on verifiable facts rather than headlines or tips, a stance reinforced by ongoing compliance efforts and transparent auditing practices.