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Broadridge reports profits rise 58 percent in 3Q

Broadridge Financial, seen here on May 7, 2018,

Broadridge Financial, seen here on May 7, 2018, reported third quarter financial results. Credit: Johnny Milano

Broadridge Financial Solutions Inc. on Tuesday reported higher profits for the January-March period compared with a year earlier because of increased demand for its investor communications services.

The company, with its headquarters in Lake Success, said its profit totaled $172 million for the three months ended March 31, up 58 percent from the same quarter in 2018.

Revenue totaled $1.2 billion for Broadridge's fiscal third quarter, up 14 percent, year over year. Much of the growth came from recurring fees.

“After a solid third quarter, Broadridge is very well-positioned to deliver strong full-year results,” said Timothy C. Gokey, CEO and president. The company's fiscal year ends June 30.

“Our sales pipeline remains strong, which, combined with our sales over the first three quarters of ... [fiscal 2019],  positions us well for future growth,” he said.

Broadridge delivers billions of documents to shareholders each year and processes trillions of dollars in stock trades each day. It has 2,300 employees on Long Island, many of them at factories in Edgewood.

The company also disclosed Tuesday that it had spent about $100 million on two acquisitions in the past month.

A deal to purchase retirement plan custody and trust assets from TD Ameritrade Holding Co. cost a projected $61.5 million. The price tag for Rockall Technologies Ltd. in Dublin, which provides software to banks for managing collateral used to secure loans, was $37 million.

The TD transaction is expected to close by June 30.

The announcement came before the stock market opened. Broadridge ended Tuesday with shares down 2.37 percent to $115.23 on the New York Stock Exchange. 

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