IRESS chief executive, Andrew Walsh, said: “Our financial results for 2017 are at the higher end of the range of the revised guidance provided to the market in November 2017. We experienced increased business and revenue momentum in the second half, realising the benefit of investments made in prior periods. In particular, second half revenue increased 3% over the first half, with second half segment profit up 11% over the first half.
“We are delivering on our strategy of providing integrated, market-leading products, with critical milestones achieved to existing and new clients.”
During the half IRESS achieved a number of business highlights, including:
APAC Financial Markets
ANZ Wealth Management
Product and Technology
On a constant currency basis, product and technology costs have increased from $98.4m to $111.8m from 2016, remaining at 25% of revenue. The increase is heavily influenced by 2016 acquisitions, remuneration and headcount increases that reflect investment in people and products. Excluding
acquisitions, Product & Technology costs increased by 7% from 2016.
On a constant currency basis, operational costs increased from $34.2m to $39.4m from 2016 due to the impact of 2016 acquisitions, headcount and wage increases. Excluding acquisitions, operational costs were up 3% on 2016. Operational costs remain constant at 9% of revenue.
On a constant currency basis, corporate costs increased from $28.2m in 2016 to $33.8m in 2017, reflecting the impact of acquisition of Financial Synergy and INET, increased headcount and wage increases, and one-off costs associated with a series of internal global people conferences. Excluding acquisitions and people conference costs, corporate costs were up 11%. Corporate costs increased by 1% to 8% of revenue.
ASX Media Release – 22 February 2018, Australia
Chief Executive Officer
Telephone: +61 2 8273 7000
Chief Financial Officer
Telephone: +61 3 9018 5800
Group Executive - Communications & Marketing
Telephone: +61 468 963 068
(1) Constant currency basis assumes 2017 results are converted at the average foreign exchange rates used for 2016. This allows comparison of group operating performance in Australian dollars before the impact of changes in Australian currency rates.
(2) IRESS considers inter-period comparability of results is best presented as the underlying operating results of the relevant businesses calculated excluding share-based payments, non-recurring items and foreign exchange impact of the revaluation of cash balances.
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