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Computershare Reports Strong Earnings and Raises Dividend


Computershare, the world’s largest share-registry provider, has announced its financial results for the six months ending in December. The company reported a management earnings per share (EPS) of $0.548, surpassing the year-earlier figure of $0.451. Despite falling slightly short of the average analyst forecasted EPS of $0.57, Computershare remains optimistic about its future prospects.

One of the main factors contributing to Computershare’s success is the increase in margin income. Margin income, which refers to the interest earned on funds held for dividends, rose to $429.4 million from $352.1 million. This surge can be attributed to central banks’ efforts to combat inflation through higher interest rates. However, analysts predict that this income will reach its peak in fiscal 2024 when rate cuts are expected.

To reward its shareholders, Computershare has raised its dividend to 40 Australian cents per share, up from 30 Australian cents in the previous year. This decision reflects the company’s commitment to providing value to its investors.

Looking ahead, Computershare expects its full fiscal year management EPS to increase by approximately 7.5% to around $1.16. The second half of the year is projected to see an 11% increase in management EPS compared to the first half. Additionally, annual margin income is anticipated to reach approximately $825 million.

Although net profit fell by 41% on a statutory basis ($105.2 million), it increased by 11% on a continuing operations basis ($229.4 million). Furthermore, revenue experienced a healthy growth rate of 6.7%, amounting to $1.61 billion.

In summary, Computershare’s strong earnings performance and increased dividend payout demonstrate its resilience in a challenging economic landscape. By capitalizing on central banks’ efforts to combat inflation, the company has positioned itself for continued growth and success.

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