Broadridge registers 12% Y/Y increase in revenues in Q4 FY22
Broadridge Financial Solutions, Inc. (NYSE:BR) today reported financial results for the fourth quarter and fiscal year 2022.
Total revenues for the fourth quarter of fiscal year 2022 increased 12% from the year-ago period to $1,723 million.
Recurring fee revenues increased 15% to $1,189 million from $1,033 million. The increase was primarily driven by 4pts of net new business and 8pts of internal growth. Internal growth was primarily driven by Investor Communication Solutions (ICS). Acquisitions also contributed 3pts of growth, primarily from the acquisition of Itiviti Holding AB.
Event-driven fee revenues decreased by $2 million, or 3%, to $70 million, as an increase in mutual fund proxy was more than offset by lower equity contest activity.
Distribution revenues increased $49 million, or 12%, to $477 million, driven equally by higher customer communications mail volumes and higher postage rates.
Operating income was $342 million, an increase of $60 million, or 21%. Operating income margin increased to 19.8%, compared to 18.4% for the prior year period due to higher Recurring fee revenues, partially offset by distribution and other revenue-related expenses, including higher amortization expense from acquired intangible assets.
Adjusted Operating income was $436 million, an increase of $87 million, or 25%. The increase was driven by higher recurring fee revenues partially offset by higher distribution and other revenue-related expenses. Adjusted Operating income margin increased to 25.3%, compared to 22.8% for the prior year period.
Interest expense, net was $21 million, an increase of $3 million, or 16%, driven by higher average debt outstanding.
Net earnings for the final quarter of fiscal year 2022 decreased 5% to $248 million and Adjusted Net earnings increased 21% to $314 million.
Diluted earnings per share decreased 5% to $2.09 and Adjusted earnings per share increased 21% to $2.65.
Tim Gokey, Broadridge’s CEO, commented:
“Broadridge’s resilient business model is built to deliver growth through different economic cycles. Looking ahead, we expect continued growth in Fiscal 2023, with 6-9% organic recurring revenue growth, continued margin expansion, and 7-11% Adjusted EPS growth. Most importantly, we are well-positioned to deliver, again, on our three-year financial objectives, with recurring revenue and Adjusted EPS growth at or above the higher end of the range.”
“Finally, I’m pleased to announce that our Board has approved a 13% increase in our annual dividend amount to $2.90 per share. Broadridge has now increased its dividend for 16 consecutive years, further underlining the strength and resiliency of our business and the durability of the trends driving our growth.”