Broadridge Financial Solutions, Inc. (NYSE:BR) today reported financial results for the fourth quarter and fiscal year 2024.
Total revenues increased 6% to $1,944 million in the final quarter of fiscal year 2024 from $1,839 million in the prior year period.
Recurring revenues increased 5% to $1,326 million from $1,259 million. Recurring revenue growth constant currency (Non-GAAP) was 5%, driven by Internal Growth and Net New Business.
Event-driven revenues increased by $17 million, or 29%, to $76 million, primarily due to higher equity proxy contests and higher volume of mutual fund proxy communications.
Distribution revenues increased $20 million, or 4%, to $542 million, driven by the impact of postage rate increases of approximately $28 million, partially offset by lower print revenues.
Operating income was $441 million, a decrease of $13 million, or 3%. Operating income margin decreased to 22.7%, compared to 24.7% for the prior year period, due to increased operating expenses, including higher Restructuring and Other Related Costs and Litigation Settlement Charges (as defined below), more than offsetting the growth in Recurring revenues and event-driven revenues.
Adjusted Operating income was $559 million, an increase of $28 million, or 5%. The increase was driven by higher Recurring revenues. Adjusted Operating income margin decreased to 28.8%, compared to 28.9% for the prior year period. The combination of higher distribution revenue and float income had an offsetting impact on margins.
Net earnings were essentially unchanged at $323 million and Adjusted Net earnings increased 9% to $415 million.
Diluted earnings per share were flat at $2.72. Adjusted earnings per share increased 9% to $3.50.
On August 5, 2024, Broadridge’s Board of Directors declared a quarterly dividend of $0.88 per share payable on October 3, 2024 to stockholders of record on September 12, 2024. This declaration reflects the Board’s approval of a 10% increase in the annual dividend from $3.20 to $3.52 per share, subject to the discretion of the Board to declare quarterly dividends.
With this increase, the Company’s annual dividend has increased for the 18th consecutive year since becoming a public company in 2007.
