Computershare’s Profit After Tax Climbs 24.9% to $286.5M on $1.5B Revenue

Revenue Decline Reflects Strategic Disposal

Computershare Limited’s half-year results for the period ending 31 December 2024 reveal a nuanced financial performance. Total revenue from ordinary activities fell 6.7% to $1.5 billion, a decline largely attributable to the May 2024 sale of its US Mortgage Services (US MS) business. This unit had contributed $197.6 million in revenue in the prior corresponding period, including $35.2 million in margin income.

Excluding the US MS disposal, revenue from continuing operations actually increased by 6.4% to $1.5 billion, driven by growth in core fees and transactional income. This suggests that the company’s remaining businesses are gaining momentum despite the revenue headwind from the divestment.

Profitability Strengthens Amid Revenue Challenges

Despite the revenue dip, Computershare’s profit after tax from continuing operations rose sharply by 24.9% to $286.5 million. The net profit attributable to members soared 173.5% to $287.8 million, reflecting not only operational improvements but also the absence of losses from the discontinued US MS segment, which swung from a $150.7 million loss in the prior period to a $1.3 million profit in the current half-year.

The company’s effective tax rate improved to 23.4%, down from 28.4% in the previous half, benefiting from changes in US state income tax mix following the US MS sale. Operating expenses increased by 4%, driven by higher business volumes, integration costs related to the Solium UK acquisition, inflationary pressures, and restructuring initiatives aimed at digitisation and cost optimisation.

Business Segment Highlights and Currency Effects

Issuer Services revenue grew 7.6%, buoyed by improvements across registry maintenance, corporate actions, stakeholder relationship management, and governance services. Corporate Trust revenue increased 6.7%, supported by stronger market activity and higher client balances in money market funds. Employee Share Plans saw a notable 22.9% revenue rise, reflecting new client wins and increased participant trading.

Mortgage Services revenue in the UK declined 5.4% due to legacy book run-off and adverse foreign exchange movements. Currency fluctuations overall added $7.6 million to revenue, with a stronger British pound and Australian dollar offsetting weakness in the Canadian dollar.

Strategic Acquisitions and Capital Management

In December 2024, Computershare expanded its footprint with the acquisitions of UK-based ingage IR Limited, an investor relations software provider, for $36.8 million, and CMi2i Limited, a leading issuer agent, for $22.7 million. These purchases align with Computershare’s strategy to enhance its technology and issuer services capabilities.

On the capital management front, the company continued its on-market share buy-back program, having repurchased 5.46 million shares for $96.3 million during the half-year. The buy-back, aimed at returning value to shareholders, is set to continue through August 2025 with a maximum aggregate value of AUD 750 million.

Dividend and Outlook

Reflecting confidence in its financial position, Computershare declared an interim unfranked dividend of AU 45 cents per share, payable on 19 March 2025. This marks an increase from the prior final dividend of AU 42 cents per share.

While the disposal of the US MS business has reshaped the revenue base, the company’s core operations demonstrate resilience and growth potential. The ongoing restructuring and digitisation efforts, alongside strategic acquisitions, position Computershare to navigate evolving market dynamics and enhance shareholder returns.