Computershare Limited (CPU)
1H Year Results – Released 15/02/17
- Beat consensus estimates for NPAT but missed on sales
- Revenue of US$999.1m missed consensus estimates of $US$1.02b
- Management EBITDA of US$241.3m reported was lower than consensus estimates of US$243.7m
- Management EPS of US 27.12 cps reported was better than US25.98 cps from a year ago
- Statutory EPS reported was US27.48 cps was 80.6% higher than US15.22 cps from a year ago
- Statutory NPAT of US$150.2m was better than US$84.3m compared to a year ago
- Interim dividend of A17 cps, 30% franked payable on 22 March
Operational Key Points
- Encouraging growth in mortgage services UKAR integration progressing well and US building towards scale
- Register maintenance EBITDA improved on slightly lower revenues with margins up through cost management
- Weak corporate actions, revenue down 16%
- Plans EBITDA up 18% aided by stronger translation volumes
- Phase 1 and 2 cost out programs underway, US$85 to US$100m total cost out target affirmed
- Client balances US$16.6b, margin income US$69.9m compared to US$79m in the pcp
- Recycling capital to drive growth, scale and improved returns
- Disciplined acquisition strategy focused on near verticals and core competencies
- Transformation to a more transparent, disciplined and profitable CPU continues
- Expectation that EPS for FY17 will be between 56c to 58c compared to 55.09c in FY16
- The outlook assumes that equity markets remain at current levels, interest rate markets perform in line with current market expectations and that FY17 corporate actions revenue is similar to FY16
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