Broadridge registers steep increase in income in Q4 FY23
Broadridge Financial Solutions, Inc. (NYSE:BR) today reported financial results for the fourth quarter and fiscal year 2023.
Total revenues increased 7% to $1,839 million from $1,723 million in the prior year period.
Recurring revenues increased 7% to $1,259 million from $1,177 million. Recurring revenue growth constant currency (Non-GAAP) was 8%, all organic, driven by Net New Business and Internal Growth.
Event-driven revenues decreased by $11 million, or 15%, to $59 million, primarily due to the decrease in volume of mutual fund proxy communications.
Distribution revenues increased $45 million, or 9%, to $522 million, driven by the impact of postage rate increases of approximately $35 million.
Operating income was $454 million, an increase of $112 million, or 33%. Operating income margin increased to 24.7%, compared to 19.8% for the prior year period, due to the growth in Recurring revenues and lower amortization expense from acquired intangible assets, more than offsetting lower event-driven revenues.
Adjusted Operating income was $531 million, an increase of $96 million, or 22%. The increase was driven by higher Recurring revenues partially offset by lower event-driven revenues. Adjusted Operating income margin increased to 28.9%, compared to 25.3% for the prior year period. The increase in pass through distribution revenues negatively impacted margins by approximately 10 basis points.
Net earnings increased 31% to $324 million and Adjusted Net earnings increased 22% to $382 million.
Diluted earnings per share increased 30% to $2.72, compared to $2.09 in the prior year period, and
Adjusted earnings per share increased 21% to $3.21, compared to $2.65 in the prior year period.
On August 7, 2023, Broadridge’s Board of Directors declared a quarterly dividend of $0.80 per share payable on October 5, 2023 to stockholders of record on September 15, 2023. This declaration reflects the Board’s approval of an increase in the annual dividend amount by 10% from $2.90 to $3.20 per share, subject to the discretion of the Board to declare quarterly dividends.
With this increase, the Company’s annual dividend has increased for the 17th consecutive year since becoming a public company in 2007.