Broadridge Posts 17% Jump in Q1 FY22 Revenue

Broadridge Financial Solutions, Inc. (NYSE: BR) has reported a 17 percent jump in its revenue for the three months between July and September, which is the first quarter of fiscal year 2022.

The total revenue of the company came in at $1.19 billion for the quarter. Out of the total figure, $751 million was generated from recurring fee revenues, which is 16 percent higher than the previous year’s revenue of $650 million.

Broadridge categorizes its business into two broad areas: investors communication solution (ICS), and global technology and operations (GTO). The quarterly revenue of the former jumped by 14 percent, while the latter saw a 21 percent increase.

The company closed the quarter with a 31 percent jump in operating income to $103 million. On an adjusted basis, this figure came in at $177 million, which is 17 percent higher. Further, the margin improved to 8.7 percent from last year’s 7.7 percent.

According to the official announcement, the operating income was pushed higher by the recurring revenues and the acquisition of Itiviti.

Positive Growth in Earnings

Moreover, the net earnings of the company increased by 2 percent in the quarter to $67 million, while the adjusted numbers jumped 10 percent to $126 million. In  addition, the diluted earnings per share strengthened by 2 percent to $0.57, whereas the adjusted number came in at $1.07. This is 9 percent higher than the previous year.

“With a strong first quarter, Broadridge is on track to achieve our full-year guidance of 12-15% recurring revenue growth and 11-15% Adjusted EPS growth,” said Tim Gokey, the CEO of Broadridge.

“We are focused on delivering sustainable, long-term growth across our governance, capital markets and wealth businesses, and we remain well-positioned to achieve the higher end of our three-year growth objectives.”

Meanwhile, Broadridge continues to expand its services and is entering new markets. It recently expanded into the Swiss market, offering custodians and local agents in the country event sourcing and proxy vote execution service.

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