In This Article:
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Adjusted IEA: Up 25.2% to $132.8 million.
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Underlying Earnings Per Share: Increased by 72.4% to $0.34 per share.
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Leverage Ratio: Reduced from 2.5 times to 1.
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Operating Margin Expansion: Expanded by 501 basis points.
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EPAT: Increased by 192% to $30.1 million.
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Final Dividend: Reinstated at $0.10 per share, 25% franked.
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Revenue: Down 3.4% overall; up 4% on a continuing business level.
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Operating Costs: Down 9%, with headcount reduced by 15% to approximately 1,500.
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Free Cash Flow: Improved notably, with net debt reduced by over $200 million.
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UK Business Growth: Adjusted EBITDA up by more than 170%.
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Trading and Global Market Data Business: Up 38% in adjusted EBITDA.
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APAC Wealth Business: Adjusted EBITDA up 13% despite revenue challenges.
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2025 Guidance for EPAT: Expected to be between $54 to $62 million, representing an 80 to 106% increase.
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2025 Guidance for Adjusted IEA: Expected growth of 6 to 12% on the continuing business.
Release Date: February 23, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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IRESS Ltd (ASX:IRE) delivered record financial results for FY24, with adjusted IEA up 25.2% to $132.8 million.
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The company reinstated a final dividend of $0.10 per share, reflecting confidence in its financial position.
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Operating leverage improved significantly, with a margin expansion of 501 basis points.
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The UK business showed strong growth, contributing significantly to the company's overall performance.
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IRESS Ltd (ASX:IRE) has successfully reduced its leverage ratio from 2.5 times to 1, strengthening its balance sheet.
Negative Points
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Revenue was down 3.4% due to divestments, although it grew by 4% on a continuing business level.
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The APEC wealth business faced revenue challenges due to structural changes in the Australian wealth market.
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Operating costs remain a focus, with a 15% reduction in headcount over the year.
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The company faces ongoing challenges in the superannuation business, with variability in cost and revenue.
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There are concerns about the impact of pricing increases on customer sentiment, particularly in the trading and market data side.
Q & A Highlights
Q: Can you elaborate on the revenue and cost inputs for the 2025 guidance and the underlying drivers of those assumptions? A: Cameron Williamson, Group CFO, explained that revenue guidance is expected to be similar to 2024, with a slight increase. They anticipate 4-5% revenue growth and 3-5% cost growth, with some cost contraction in certain areas. Investments will be made to drive new revenue streams, leading to margin expansion.