Broadridge Saw 10% Increase in Revenues for Q3 FY22

Broadridge Financial Solutions, Inc. today reported financial results for the third quarter ended March 31, 2022 of its fiscal year 2022.

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Financial Highlights

• ​Total revenues increased 10% to $1,534 million from $1,390 million in the prior year period.

• ​Operating income was $246 million, an increase of $7 million, or 3%. Operating income margin decreased to 16.0%, compared to 17.2% for the prior year period due to higher amortization expense from acquired intangible assets, an increase in low-margin distribution revenues, growth investments and other expenses, more than offsetting growth in recurring fee revenues.

• ​Interest expense, net was $20 million, an increase of $8 million, primarily due to an increase in debt outstanding related to the May 2021 acquisition of Itiviti.

• ​The effective tax rate was 21.0% compared to 23.9% in the prior year period. The decrease in the effective tax rate was driven by higher total discrete tax items.

• ​Net earnings increased 7% to $177 million and Adjusted Net earnings increased 10% to $228 million.

"Broadridge delivered another strong quarter, with 16% recurring revenue and 10% Adjusted EPS growth,"said Tim Gokey, Broadridge's CEO."Our growth is being propelled by long-term trends and by the continued execution of our strategy.

"Broadridge is poised to deliver another year of strong growth. Based on our strong performance to date and visibility into our seasonally larger fourth quarter, we continue to expect fiscal year 2022 recurring revenue growth at the high end of our 12-15% range and are increasing our expectations for Adjusted EPS growth to 13-15%, up from 11-15% previously."