Broadridge 2015/16 Financial Year Starts with Profit Growth

Thursday, 05/11/2015 | 12:34 GMT by Irina Slav
  • Recurring fee revenues are behind the robust performance, underpinned by net new business
Broadridge 2015/16 Financial Year Starts with Profit Growth
Finance Magnates

Broadridge Financial Services (NYSE:BR) reported strong metrics for the first quarter of its financial year, July-September 2015, with revenues up by 7 percent year-on-year to $595 million, and net profits at $34 million, up 3 percent.

All Business Divisions Contribute

The company said in a press release that the revenue increase was fuelled by higher recurring fee income, which went up 10 percent on an annual basis. Distribution revenues were also up, 7 percent, and event-driven fee revenues were 9 percent higher than in the third quarter of 2014.

The financial services providerโ€™s operating result was also higher, at $59 million, up 4 percent on the year, but the increase was also offset to a degree by higher operating expenses, Broadridge said.

Full-Year Forecast Optimistic

The Investor Communication Solutions business registered a 9 percent increase in revenues for the three-month period, at $430 million. The biggest contributor to this result was recurring fees, boosted by recent acquisitions ad net new business, Broadridge said. The contribution of the companyโ€™s other main business division, Global Technology and Operation, booked the same annual increase in revenues, 9 percent, to $177 million. Here as well, net new business was the major driver of revenues growth.

In light of these results, Broadridge said that itโ€™s keeping its full-year guidance unchanged, expecting a revenue increase of between 8 to 10 percent, and an adjusted operating margin of around 18.4 percent. Earnings per share are projected to increase by 8 and 12 percent, and free cash flows are seen at $350-$400 million.

Broadridge Financial Services (NYSE:BR) reported strong metrics for the first quarter of its financial year, July-September 2015, with revenues up by 7 percent year-on-year to $595 million, and net profits at $34 million, up 3 percent.

All Business Divisions Contribute

The company said in a press release that the revenue increase was fuelled by higher recurring fee income, which went up 10 percent on an annual basis. Distribution revenues were also up, 7 percent, and event-driven fee revenues were 9 percent higher than in the third quarter of 2014.

The financial services providerโ€™s operating result was also higher, at $59 million, up 4 percent on the year, but the increase was also offset to a degree by higher operating expenses, Broadridge said.

Full-Year Forecast Optimistic

The Investor Communication Solutions business registered a 9 percent increase in revenues for the three-month period, at $430 million. The biggest contributor to this result was recurring fees, boosted by recent acquisitions ad net new business, Broadridge said. The contribution of the companyโ€™s other main business division, Global Technology and Operation, booked the same annual increase in revenues, 9 percent, to $177 million. Here as well, net new business was the major driver of revenues growth.

In light of these results, Broadridge said that itโ€™s keeping its full-year guidance unchanged, expecting a revenue increase of between 8 to 10 percent, and an adjusted operating margin of around 18.4 percent. Earnings per share are projected to increase by 8 and 12 percent, and free cash flows are seen at $350-$400 million.

About the Author: Irina Slav
Irina  Slav
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