Broadridge Reports Strong FY 2024 Performance and Dividend Increase

​Broadridge Financial Solutions has disclosed its financial results for the fourth quarter and fiscal year 2024, showcasing a robust performance across various segments. For the fourth quarter, total revenues increased by 6% to $1,944 million, up from $1,839 million in the same period last year. The growth was driven by a 5% rise in recurring revenues, which reached $1,326 million, reflecting internal growth and new business.

The company saw a notable 29% increase in event-driven revenues, totaling $76 million. This rise was primarily due to a higher volume of equity proxy contests and mutual fund proxy communications. Distribution revenues also experienced a 4% increase, reaching $542 million, largely due to postage rate hikes which contributed approximately $28 million. However, this was somewhat offset by reduced print revenues.

Despite the positive revenue growth, Broadridge reported a 3% decrease in operating income to $441 million, with the operating income margin declining to 22.7% from 24.7% in the previous year. This decline was attributed to higher operating expenses, including increased restructuring and litigation settlement costs. Nonetheless, adjusted operating income saw a 5% increase, reaching $559 million, with an adjusted operating income margin of 28.8%, slightly down from 28.9% the previous year.

Net earnings remained relatively stable at $323 million, while adjusted net earnings grew by 9% to $415 million. The company also reported flat diluted earnings per share at $2.72, but adjusted earnings per share increased by 9% to $3.50. Reflecting confidence in its financial health, Broadridge's Board of Directors declared a quarterly dividend of $0.88 per share, payable on October 3, 2024. This marks a 10% increase in the annual dividend from $3.20 to $3.52 per share and continues the company's trend of increasing its annual dividend for the 18th consecutive year since becoming public in 2007.