KiwiSaver Schemes Report Increased Losses Despite Revenue Growth

Highlights:

• Sharesies KiwiSaver Scheme: Reports a net loss of over $1 million for the year ending March 2024, a significant increase from the previous year's $331,000 loss. Revenue surged from $1,000 to $534,000, with membership growing to approximately 8,000.
• Kōura Wealth: Posts a net loss of $1.7 million, up from $1.5 million the previous year, despite revenue increasing to $655,000. Additional contributions from equity holders amount to $1.2 million, bringing total contributions to $6.1 million.
• Market Dynamics: Both schemes are experiencing higher losses but are showing positive revenue growth and increased member engagement, indicating potential for future financial stability and growth in the competitive KiwiSaver market.

Two emerging KiwiSaver schemes, Sharesies KiwiSaver and Kōura Wealth, reported higher losses in their latest financial year, despite notable gains in revenue.

Sharesies KiwiSaver Scheme

Sharesies Investment Management, the KiwiSaver arm of Sharesies, reported a net loss of just over $1 million for the year ending March 2024, an increase from the previous year's $331,000 loss. Despite this, the company's revenue surged from $1,000 to $534,000. Sharesies KiwiSaver has grown its membership from around 5,000 members as of March 31 to approximately 8,000. The company anticipates needing around 5,000 more members to break even. Sharesies' parent company is expected to provide additional equity as needed.

Kōura Wealth's Performance

Kōura Wealth, known for offering a diverse range of KiwiSaver funds including a bitcoin-based option, also faced a challenging year. The company reported a net loss of $1.7 million, up from $1.5 million the previous year. However, revenue nearly doubled to $655,000, indicating progress. Kōura's equity holders contributed an additional $1.2 million, bringing total contributions to $6.1 million, while accumulated losses stood at just over $6 million.

Conclusion

Both Sharesies KiwiSaver and Kōura Wealth are showing positive revenue growth, but the path to profitability remains challenging. With increased member engagement and strategic investments, both companies are positioning themselves for future success in the competitive KiwiSaver market. However, they will need to continue managing losses and securing additional capital to sustain their growth trajectories.

These developments highlight the dynamic nature of the KiwiSaver landscape, where new players are striving to carve out their niches while navigating financial challenges.

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