Half Year 2024 Iress Ltd Earnings Call Transcript
Key Points
- Adjusted EBITDA for the half-year reached $67 million, a 52% uplift and at the top end of the expected range.
- Operating leverage improved significantly with margins up 760 basis points.
- Debt reduction program successfully decreased debt by $240 million, reducing debt servicing costs by over $10 million.
- Pro forma revenue growth of 4% driven by new pricing frameworks and product enhancements.
- Full-year guidance upgraded by 9% from the May update, with new guidance for adjusted EBITDA in the range of $126 million to $132 million.
- Superannuation business underperformed with revenue down 7% and adjusted EBITDA at negative $3.6 million.
- Recurring revenue in the Superannuation segment decreased significantly due to client losses and restructuring.
- Trading and global market data faced challenges with lower trading volumes and fewer IPOs.
- Transformation costs remain high, with ongoing expenses expected into the first half of 2025.
- Stranded costs from divested businesses remain a concern, with ongoing efforts required to manage and reduce these costs.
Thank you very much for the introduction. It's my pleasure and in fact, a privilege today to present the mid-year results for Iress on behalf of the team here. It's been a terrific six months as we work through our transformation program, and we're going to deliver some very strong results. I'm joined today by our Deputy CFO, Julia Wong. Our CFO, Cameron Williamson is unfortunately unable to join us today due to a family emergency and I think Julia is standing in at relatively short notice.
Today, we'll be covering the progress on the Iress transformation program, which is delivering strong results ahead of schedule. We indeed, we pre-released our results on July 22 for that reason. There's a lot more to come from transformation. We've still got the last leg of the journey on the table. But today, as a result of the strong performance, we will be upgrading our guidance.
Getting into the details. On July 22, we announced an expectation of our adjusted EBITDA for the year in the range of $65 million
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