Full Year 2023 Iress Ltd Earnings Call Transcript
Key Points
- IRESS Ltd (ASX:IRE) reported underlying EBITDA of $128.3 million, which is at the top end of their revised guidance.
- The company has seen improved customer sentiment, reflected in higher NPS scores.
- Significant cost management initiatives have been implemented, resulting in a 15% reduction in headcount.
- The company has successfully sold MFA for $50.5 million and is progressing with other asset sales, including the UK mortgages business.
- Revenue per FTE has increased by 28% compared to the previous year, indicating improved efficiency.
- Reported EPS for the year was negative $0.764, driven by significant write-downs.
- Underlying EBITDA was down 12% compared to the previous year.
- The superannuation segment reported a negative underlying EBITDA of 4.6%, primarily due to high remediation costs.
- The company has experienced significant inflationary pressures, particularly in tech infrastructure, market and data fees, and software and hardware licensing.
- Net debt and leverage ratios have increased, although they have improved slightly in the second half of the year.
Good morning, everybody. Welcome to the Iress results presentation. Today, we're announcing a solid result for the company. We've come in at the top end of our revised guidance. We're also moderately upgrading our guidance for 2024 and our exit run rate for 2024 off the back of an improved outlook for the company.
This is a significant update today because it's more than just results. We will be taking you through the 2023 results and the progress of our transformation. But importantly, Cameron's going to take you through a couple of other things as well. Apart from doing the financial results, he will also be taking you through some of the other changes we want to initiate.
We did set out to provide more transparency to the market back in our April Investor Day. And we're continuing to deliver on that today with a couple of additional items. The first is that we will be looking at making a change in the metrics with which we're reporting moving from an underlying EBITDA. As you know, we've moved away from segment profit already. We're going to
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