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Broadridge announces 4% revenue growth for the financial year and 12% for the final quarter



Fintech Broadridge Financial Solutions reported its results for the fourth quarter and the full financial year 2020 ended 30 June. While the pandemic has badly hurt the financial services sector share price wise, as near-zero interest rates hit margins, Broadridge has held up well.

Highlights for the fourth quarter results include:

  • Total revenue for the fourth quarter reached $1,362 million, up by 12% compared to the same period last year when it was $1,211 million.
  • Recurring fee revenues increased 14% YoY to $930 million from $813 million.
  • Operating income was $299 million, up by 24% compared to $241 in 2019.
  • Adjusted Operating income reached 25% YoY growth with $335 million.
  • Net earnings increased 25% to $230 million and Adjusted Net earnings increased 24% to $251 million.

Highlights for the yearly financial results include:

  • Total revenue for the fourth quarter reached $4,529 million, up by 4% compared to the same period last year when it reached $4,362 million
  • Recurring fee revenues increased 10% to $3,036 million from $2,760 million in 2019.
  • Operating income was $625 million, down 4% compared to $653 in 2019.
  • Adjusted Operating income was $795 million, up by 6% from $746 million during the previous year.
  • Net earnings decreased 4% to $462 million and Adjusted Net earnings increased 6% to $588 million.

Tim Gokey, Broadridge’s CEO said:

Tim Gokey, Broadbridge
Tim Gokey
Source: LinkedIn

With an exceptional fourth quarter, Broadridge reported strong fiscal year 2020 results including 10% Recurring revenue growth, 8% Adjusted EPS growth, and record closed sales. Our full-year performance despite event-driven headwinds and the ongoing pandemic further validates the Broadridge business model and value proposition, and gives us even greater confidence in our long-term opportunity.

I am especially pleased to report that we have achieved our three-year objectives for Recurring revenue growth, margin expansion, and Adjusted EPS 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 concluded:

Despite macroeconomic uncertainty, our outlook for fiscal 2021 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. To further underscore our confidence in our outlook, we are raising our annual dividend for the fourteenth consecutive year, every year since becoming a public company.

In the beginning of this week, Broadridge’s Board of Directors announced quarterly dividend of $0.575 per share payable on 5 October to stockholders.


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Broadridge announces 4% revenue growth for the financial year and 12% for the final quarter

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