Broadridge reports a 6% increase in recurring revenue for the 2023 fiscal year
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Broadridge Financial Solutions has published its financial results for the second quarter of the 2023 financial year. In the financial results, the company reported a 3% annual increase in total revenues, which came to around $1.3 billion. Moreover, the company reported a recurring revenue of $840 million, which was a 6% increase.
Broadridge reports a 6% increase in recurring revenue
Broadridge is one of the largest players in the financial sector. The company provides its clients with investor communication solutions (ICS) and global technology and operations (GTO).
Broadridge reported $919 million in revenues from the ICS division in the recently released financial results. This figure represented a 3% increase from what was reported during the same period in the previous fiscal year. The GTO division also reported a 2% increase in revenues, reaching $373 million.
The company’s operating income during the financial year also jumped by 57% to reach $108 million. The margin was also higher as it rose from 5.5% to 8.3%. The adjusted operating income reported by the company during the period increased from $141 million to $173 million, representing a 23% increase.
With these financial results, Broadridge closed the quarter with diluted earnings per share of $0.48, which was a 20% increase. On the other hand, the adjusted EPS increased by 11% to $0.91.
Over the last six months, the company reported $2.57 billion in total revenues, which was a 5% increase. The operating income reported during the period was $195 million, with a margin of 7.6%. On the other hand, the diluted EPS dropped by 6%, while the adjusted EPS declined by 7%.
The Chief Executive at Broadridge, Tim Gokey, commented on the company’s financial results saying, “Broadridge delivered strong results in the second quarter. We continue to see growth driven by conversion of sales backlog into new revenue and strength in investor participation.”
Broadridge optimistic about positive results by the close of the fiscal year
The financial results posted by the company for the second quarter of its 2023 financial year have created optimism about the overall outlook. The company plans to close the 2023 fiscal year with recurring revenue growth of 6% and 9%. The company expects the diluted EPS to increase between 13% and 17%, while the adjusted EPS will range between 7% and 11%.
Gokey noted that the strong Q2 results and the commitment of the company to continue delivering would enable it to achieve its target for the 2023 fiscal year. The company expected significant growth if the coming quarters reflected a similar trend as the one seen during the second quarter.
Broadridge is working alongside other companies to boost its offerings. The company recently integrated IntraFi and Glue42 into its offerings. It also secured a partnership deal with Coinbase to support interoperability. In January, Broadridge extended its partnership deal with IGM Financial for the Broadridge R.Broker solution.
