Broadridge Revenue Jumps 12% in Q4, Adds Itiviti PlatoBlockchain Data Intelligence. Vertical Search. Ai.

Broadridge Revenue Jumps 12% in Q4, Adds Itiviti

Broadridge Financial Solutions, Inc. (NYSE: BR) has published its financials for the fourth quarter of the financial year 2021, ending the quarter with a revenue increase of 12 percent and the year with a 10 percent gain.

The financial services company generated total revenue of $1.53 billion in the last quarter of the fiscal year compared to $1.36 billion in the prior year. Its recurring fee revenues increased by 15 percent to touch $1.06 billion.

Broadridge categorizes its business into two broad areas: investors communication solution (ICS) and global technology and operations (GTO). It reported growth in both segments.

First Quarter with Itiviti’s Numbers

ICS, which is the primary revenue generator for the company, brought in $1.22 billion in revenue, which was a yearly jump of 12 percent. The revenue from the GTO business, which includes Broadridge’s recently acquired subsidiary Itiviti, came in at $346 million, $32 million higher than the previous year.

Broadridge completed the acquisition of Itiviti last May and the new subsidiary contributed 9pts of recurring fee revenue growth in the short period to the GTO revenue figures and 3pts to the overall numbers.

Suggested articles

EuropeFX Partners with ZuluTrade for Social Trading CapabilitiesGo to article >>

Despite the revenue gain, the overall operating income of the company went down by 6 percent to $281 million, while the margin dropped to 18.4 percent from 21.9 percent. The company pointed out the higher amortization expense from acquired intangible assets and higher spending from growth initiatives as the reason behind the income contraction.

On an adjusted basis, on the other hand, the operating income grew 4 percent to $349 million.

Coming to the overall yearly results, the company closed the fiscal year 2021 with total revenue of more than $4.99 billion, along with an operating income of $679 million, which jumped 9 percent.

“We have continued to invest in our long-term growth both organically and with the recent acquisition of Itiviti,” Broadridge CEO, Tim Gokey said. “Looking ahead to fiscal year 2022, we expect another strong year, with 12-15% Recurring revenue growth, continued margin expansion, and 11-15% Adjusted EPS growth.”

Source: https://www.financemagnates.com/institutional-forex/broadridge-revenue-jumps-12-in-q4-adds-itiviti/

Time Stamp:

More from Finance Magnates