Computershare Reports 18.7% EPS Growth and 12.5% Dividend Increase in 1H25

Strong Half-Year Momentum

Computershare has reported a strong set of financial results for the first half of FY25, showcasing the resilience and growth potential of its capital-light business model. Management earnings per share (EPS) rose by 18.7% to 65 cents, reflecting solid operational execution and strategic focus. This performance was underpinned by a 6.4% increase in revenue, driven by growth in recurring fee income and transaction volumes across all core business segments.

Despite a slight 0.8% decline in margin income due to falling interest rates, the company managed to offset this through increased client balances and effective hedging strategies. Average client balances rose by $3 billion, supporting margin income stability and contributing to overall earnings growth.

Operational Highlights and Strategic Investments

All core businesses delivered positive results, with management EBIT excluding margin income increasing by 28% and EBIT margins expanding by 230 basis points to over 15%. Issuer Services benefited from investments in digitisation, enhancing client service and operational efficiency. Corporate Action volumes remained stable, while average fees per event increased by more than 10%, signaling improved pricing power.

In December, Computershare expanded its capabilities through acquisitions of Ingage and CMi2i, enhancing its offerings in investor relations and beneficial ownership intelligence. Corporate Trust also saw improved fee revenues and a recovering market for debt issuance, while Employee Share Plans continued double-digit growth, supported by the near-completion rollout of the EquatePlus technology platform in North America.

Capital Management and Upgraded Guidance

Computershare maintains a strong balance sheet and high cash conversion, enabling ongoing investments in innovation and acquisitions. The company is balancing growth initiatives with shareholder returns, announcing a 12.5% increase in its interim dividend to AUD 45 cents per share, unfranked. The share buyback program is expected to conclude around the end of the financial year, further supporting returns.

Reflecting confidence in its business momentum and multiple earnings drivers, Computershare upgraded its FY25 management EPS guidance to approximately 135 cents per share, a 15% increase over the prior year and significantly above the previous 7.5% growth forecast. This signals management’s optimism about sustained growth and margin expansion in the year ahead.

Looking Ahead

While the results underscore Computershare’s strategic progress and operational strength, the company’s ability to sustain growth amid fluctuating interest rates and evolving market conditions will be closely watched. The integration of recent acquisitions and the impact of ongoing digitisation efforts will be key factors shaping future performance.