Broadridge reports 25% increase in profits as clients make COVID-19 changes
Broadridge CEO Timothy C. Gokey Credit: Debbie Egan-Chin
Broadridge Financial Solutions Inc. saw its profit increase 25% in the April-June period compared with a year ago, in part because public-company customers moved forward their annual shareholders’ meeting.
The Lake Success-based distributor of proxy statements, annual reports and other investor documents said Tuesday its profit totaled $230 million in the three months ended June 30 compared with $183 million in the same period in 2019.
Revenue in the quarter totaled $1.4 billion, a 12% increase, year over year.
Broadridge executives said its financial results benefited from “a shift of proxy communications from the [company’s] third quarter [January-March] to the fourth quarter [April-June] as a result of the COVID-19 pandemic.”
They said there was increased demand for the company's virtual annual meeting service as clients scrapped plans for in-person meetings to help slow the coronavirus’ spread. Typically, many public companies hold their shareholders' meeting in spring.
Broadridge said it spent $2.4 million on virus-related expenses, including employee protections. On Long Island, the company has 2,300 workers, many of them at large factories in Edgewood.
For the year, Broadridge reported a profit of $462 million on revenue of $4.5 billion. It’s the region’s second-largest public company based on revenue after medical products distributor Henry Schein Inc. in Melville.
“Our full-year performance despite event-driven headwinds and the ongoing pandemic further validates the Broadridge business model,” said CEO Timothy C. Gokey. “Our strategic focus on industry solutions for governance, capital markets and wealth management is on-track.”
Broadridge delivers billions of documents to shareholders each year and processes trillions of dollars in stock trades each day.
The company’s shares closed up $5.51, or 4%, to $142.11 on the New York Stock Exchange on Tuesday.
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James T. Madore writes about Long Island business news including the economy, development, and the relationship between government and business. He previously served as Albany bureau chief.
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