Broadridge Financial Solutions, Inc. (NYSE:BR) reported financial results for the second quarter and six months ended December 31, 2020 of its fiscal year 2021.
Financial Results for the Second Quarter Fiscal Year 2021 compared to Second Quarter Fiscal Year 2020
Total revenues increased 9% to $1,055 million from $969 million in the prior year period.
◦ Recurring fee revenues increased 7% to $696 million from $648 million. The increase was primarily driven by growth from onboarding of net new business, internal growth, and the impact of acquisitions. Internal growth of 2 pts was driven by GTO, primarily due to higher equity trade volumes as compared to the prior year period.
◦ Event-driven fee revenues increased $14 million, or 46%, to $45 million, due to increased mutual fund proxy and other communications.
◦ Distribution revenues increased $28 million, or 9%, to $345 million, driven by an increase in the volume of regulatory and event-driven communications.
◦ Currencies negatively impacted revenues by $3 million due to a combination of foreign acquisitions and continued international revenue growth.
Financial Results for the Six Months Fiscal Year 2021 compared to the Six Months Fiscal Year 2020
Total revenues increased 8% to $2,072 million from $1,917 million in the prior year period.
◦ Recurring fee revenues increased 8% to $1,367 million from $1,272 million. The increase in Recurring fee revenues was driven primarily by growth from onboarding of net new business and the impact of acquisitions. Internal growth was 1 pt driven by (i) GTO, primarily due to higher equity trade volumes, and (ii) higher ICS volume of equity proxy, mutual fund, and exchange traded fund communications, partially offset by (iii) lower interest rates on cash balances we hold for retirement accounts and lower customer communication volumes.
◦ Event-driven fee revenues increased $20 million, or 28%, to $91 million, due to increased mutual fund proxy and other communications.
◦ Distribution revenues increased $47 million, or 7%, to $677 million, driven by an increase in the volume of regulatory and event-driven communications.
◦ Currencies negatively impacted revenues by $7 million due to a combination of foreign acquisitions and continued international revenue growth.
Source: www.broadridge-ir.com
