Subdued transactional revenues have resulted in Computershare (ASX:CPU) experiencing an overall drop in revenue of 3.8 per cent to $US781 million for the half year ended 31 December 2010, a figure the Australian investor services company claims is in line with company expectations.
Overall, reported Earnings before interest, taxes, depreciation and amortisation (EBITDA) was recorded at $US233.6 million for the half year to 31 December 2010, two per cent higher than the previous six months, however was down 16 per cent on the previous financial year’s recorded $277.3 million.
Management adjusted net profits after tax posted $US149.8 million for the half year to 31 December, a decrease of 14 per cent on the $174.4 million posted for financial year 2010.
In the Australia/New Zealand region, the company posted a revenue slide of 3.1 per cent to $179.9 million for the 12 months to 31 December 2010. EBITDA in the region also fell 16.1 per cent on the year to $48.2 million despite the strong Aussie dollar.
In a statement to the ASX, Computershare chief executive, Stuart Crosby, said equity market and general economic conditions had been less volatile than in recent years, however had still been unfriendly to Computershare’s business model.
“Interest rates are low, market and [mergers and aquisition] transactional activity is slow, and the expected “second wave” of US bankruptcies has not yet hit,” he said in the statement.
According to Crosby, the company remains well placed to take advantage of the “inevitable” upturn in the cycle whenever it arrives and will continue to explore acquisition and other growth opportunities.
“However, any acquisition or increase in transactional activity is unlikely to have a material impact this year and so we continue to anticipate management EPS [earnings per share] being five per cent to 10 per cent lower in FY11 than it was in FY10,” he said.
In contrast, the company January last year signalled its forthcoming results for the six months to 31 December 2010 would exceed expectations as preliminary number had indicated management earnings per share would be around 20 per cent higher than in the first and second halves of financial year 2009.
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