Broadridge Financial Solutions - formerly known as ADP Brokerage Services Group - is reporting a drop in fourth quarter profit after rising expenses ate into earnings.
Brokerage services firm Broadridge, which was spun off from Automatic Data Processing in April, has posted net income for its fiscal fourth quarter ending 30 June 2007 of $98.7 million, down from $100.7 million a year earlier.
The vendor says its Q4 net revenue grew by eight per cent over Q4 2006 to $774 million. This was driven by internal growth from existing clients and higher revenues related primarily to distribution fees, and to a lesser extent by fees relating to proxy services.
But the group's expenses rose 12% to $615.2 million, from 549.3 million a year earlier.
Despite this Richard Daly, Broadridge CEO says the results were "slightly better than our expectations".
Fiscal year 2007 net revenue came in at $2.14 billion, compared to $1.93 billion for fiscal 2006. The group's full year net income was $197.1 million, compared to $166.7 million in fiscal 2006.