Broadridge Financial Solutions Reports Slight Decline in Revenues and Profitability in Q3 2024

Broadridge Financial Solutions, Inc. reported its financial results for the three months ended September 30, 2024, revealing a slight decline in revenues and profitability compared to the same period in the previous year. Total revenues for the quarter were $1,422.9 million, down $8.2 million (1%) from $1,431.1 million in Q3 2023. The decrease was primarily attributed to a drop in event-driven revenues, which fell by $23.8 million (28%) to $63.0 million, influenced by lower corporate action activity and reduced mutual fund proxy communications. However, recurring revenues increased by $29.1 million (3%) to $900.3 million, driven by net new business in the Investor Communication Solutions (ICS) segment and internal growth in the Global Technology and Operations (GTO) segment.

Operating expenses for the quarter rose to $1,288.4 million, an increase of $5.8 million (0%) from $1,282.6 million in the prior year. This increase was due to higher selling, general, and administrative expenses, which rose by $6.0 million, primarily from technology-related costs. Operating income decreased to $134.4 million, down from $148.4 million in the same period last year, while net earnings fell to $79.8 million, a decrease of $11.1 million (12%) from $90.9 million in Q3 2023. Basic and diluted earnings per share also declined to $0.68, down from $0.77 and $0.76, respectively.

The company’s comprehensive income for the quarter was $109.0 million, compared to $74.6 million in the same period last year, reflecting a significant increase in total other comprehensive income, which amounted to $29.2 million, compared to a loss of $16.3 million in Q3 2023.

Broadridge's balance sheet showed total assets of $8,017.1 million as of September 30, 2024, down from $8,242.4 million at the end of June 2024. Total liabilities decreased to $5,810.7 million from $6,074.2 million, while total stockholders’ equity increased to $2,206.4 million from $2,168.2 million.

Strategically, Broadridge completed the acquisition of AdvisorTarget in May 2024 for $34.3 million, enhancing its ICS segment with data products for asset management and wealth management firms. Additionally, the company announced the acquisition of Kyndryl’s Securities Industry Services business for approximately $185 million, aimed at bolstering its GTO segment offerings.

The company continues to focus on its operational efficiency and growth, with expectations of sufficient cash flows to meet future commitments and strategic investments.