Broadridge reports favourable 2020 fiscal year figures
Latest news
Broadridge reports favourable 2020 fiscal year figures 11 August 2020New York Reporter: Rebecca Delaney
Image: oatawa/Adobe Stock
Broadridge Financial Solutions has reported total revenues of $4.5 billion in the fiscal year ended 30 June 2020, marking an increase of 4 percent compared to the same period last year.
The corporate services firm totalled recurring fee revenues of $3 billion, an increase of 10 percent from $2.7 billion in 2019. This growth was attributed to high organic internal growth, including acquisitions, global technology and operations, which were driven by higher trading volumes from market volatility.
It was also noted that internal growth in Broadridge’s investor communications segment, driven by strong stock record growth and a shift of proxy communications into Q4 by the COVID-19 pandemic, was responsible for higher recurring fee revenues.
However, operating income fell by 4 percent to $625 million, attributable to charges associated with the information technology agreement with international business machines for private cloud services.
Tim Gokey, CEO of Broadridge, commented: “With an exceptional fourth quarter, Broadridge reported the strong fiscal year 2020 results. Our full-year performance, despite event-driven headwinds and the ongoing COVID-19 pandemic, further validates the Broadridge business model and value proposition.”
“I am especially pleased to report that we have achieved our three-year objectives for recurring revenue growth, margin expansion, and adjusted earnings per share growth. Our progress against these goals is a strong indication that our strategic focus on industry solutions for governance, capital markets, and wealth management is on-track,” Gokey continued.
“Despite macroeconomic uncertainty, our outlook for the 2021 fiscal year calls for continued organic growth, anchored by a record revenue backlog, and balances cost discipline and increased investment that will position us to take advantage of the recovery and drive long-term growth,” Gokey concluded.
NO FEE, NO RISK 100% ON RETURNSIf you invest in only one asset servicing news source this
year, make sure it is your free subscription to Asset Servicing Times
Image: oatawa/Adobe Stock 