Broadridge registers 8% Y/Y increase in revenues in Q1 FY23
Broadridge Financial Solutions, Inc. (NYSE:BR) today reported financial results for the first quarter ended September 30, 2022 of its fiscal year 2023.
Total revenues increased 8% from the year-ago quarter to $1,283 million, whereas recurring revenues increased 7%, from $750 million.
Organic growth of 9% was driven by 5pts of Net New Business and 5pts of Internal Growth. The growth in Net New Business contributed to growth in both ICS and GTO Recurring revenues. Internal Growth was driven primarily by growth within our GTO business.
Investor Communication Solutions (ICS) total revenues were $921 million, an increase of $67 million, or 8% from the prior-year period. Global Technology and Operations (GTO) recurring revenues were $363 million, an increase of $23 million, or 7%.
Operating income was $88 million, a decrease of $16 million, or 15%. Operating income margin decreased to 6.8%, compared to 8.7% for the prior year period, due to lower event-driven revenues, an increase in low-margin distribution revenues, growth investments and other expenses, more than offsetting growth in Recurring revenues and lower amortization expense from acquired intangible assets.
Net earnings decreased 25% to $50 million and Adjusted Net earnings decreased 21% to $100 million.
Diluted earnings per share decreased 26% to $0.42, compared to $0.57 in the prior year period, and Adjusted earnings per share decreased 21% to $0.84, compared to $1.07 in the prior year period.
Broadridge’s CEO Tim Gokey commented:
“Broadridge reported another strong quarter, highlighting the resilience of our business model and the positive long-term trends driving our growth. Recurring revenues grew 9% constant currency, powered by new sales, continued strength in investor participation, and the strong performance of our BTCS business. Adjusted EPS of $0.84 was modestly ahead of our expectations in our seasonally small first quarter.”
“With a strong start, we are reaffirming our guidance for our fiscal year ending in June 2023, including 6 – 9% Recurring revenue growth constant currency and 7 – 11% Adjusted EPS growth. Driven by the critical role we play powering investing and corporate governance, Broadridge continues to be well-positioned for resilient growth across economic cycles and we are on track to deliver at or above the higher end of our three-year financial objectives.”