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.
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The financial services provider’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 company’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 it’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.