Broadridge revenues increase 38% YoY in Q4 FY2017


Broadridge Financial Solutions, Inc. (NYSE:BR) today reported financial results for the fourth quarter of its fiscal year 2017.

Richard J. Daly, President and Chief Executive Officer commented:

Broadridge ended fiscal 2017 on a strong note, driving record results. Revenues rose 43% to $4.1 billion, fueled by 6% organic growth in recurring fee revenues and the acquisition of DST’s NACC business, and Adjusted EPS increased 15% to $3.13. I am especially pleased by our strong closed sales results. Closed sales rose 25% to a record $188 million in fiscal 2017, including $64 million in the fourth quarter, positioning Broadridge well for future growth.

Given our multi-year focus, I am proud to report that Broadridge achieved the three year financial objectives we set out at our investor day in December 2014 by delivering three year compound annual growth in recurring revenue of 14% and Adjusted earnings growth of 11%. We look forward to providing another set of three year objectives at our next investor day this coming December. Our guidance for fiscal year 2018 calls for another strong year, with recurring fee revenue growth in the range of 4% to 6%, Adjusted EPS growth of 15% to 19%, and closed sales in the range of $170 million to $210 million,” he added.

The Board of Directors approved an 11% increase in our annual dividend amount to $1.46 per share based on Broadridge’s fiscal year 2017 performance and their confidence in the strength of our business. I am proud to note that Broadridge has raised its dividend every year since becoming a public company in 2007, with fiscal year 2018 marking the sixth consecutive double digit increase,” Mr. Daly concluded.

Revenues

Revenues for the three months ended June 30, 2017 (fourth quarter of fiscal year 2017) increased 38% to $1,346 million from $975 million for the prior year period. Revenues from acquisitions contributed $258 million of this total increase, with the revenues of the North American Customer Communications business acquired from DST Systems, Inc. (“NACC”) contributing $251 million.

Recurring fee revenues rose 24% to $806 million from $649 million. The increase in recurring fee revenues reflected organic growth of 8%, including 4% from internal growth and 3% from Net New Business.

Acquisitions accounted for the remainder of the increase, including $101 million from the acquisition of NACC. Distribution revenues rose $188 million, or 65%, to $476 million, largely driven by the acquisition of NACC. Eventdriven revenues increased 62% to $91 million from $56 million. Changes in foreign currency rates lowered Broadridge’s total revenue by $8 million as compared to the prior year period.

To see the complete report, click here.

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Broadridge revenues increase 38% YoY in Q4 FY2017

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