computershare's profit falls 15%

February 11, 2009 - 8:49AM
Computershare Ltd has reported a 15 per cent fall in first half profit reflecting exchange rate movements and subdued initial public offer markets, and says its annual result should be similar to last financial year.

The world's largest global share registry and market technology services provider made a net profit of $US130.87 million ($A200 million) for the six months ended December 31, down from $US154.93 million in the previous corresponding period.

Revenue fell 0.8 per cent to $US777.06 million ($A1.19 billion).

It declared an interim dividend of 11 Australian cents, in line with last time.

Computershare chief executive Stuart Crosby said the half year performance was credible given the tough trading environment and that the group saw an opportunity to increase its market share.

"Everything else being equal, we remain on track to deliver a similar result to last year," he added.

"While the current environment requires us to be vigilant about revenue retention and cost control, it also offers a once in a generation opportunity to lift our market position.

"Our strong balance sheet and cash flows allow us to invest in further service enhancements and new products for our clients at a time when many of our competitors are needing to focus on refinancing and basic survival.

"We intend to take maximum advantage of this opportunity."

Management EPS fell four per cent to 26.14 US cents in the first half from the previous corresponding period, but was up eight per cent against the second half of 2007/08.

Computershare said its outlook for 2008/09 EPS remained unchanged.

Its still expects US dollar management EPS for the current financial year to be about the same as last year, perhaps marginally behind.

Computershare said given the dramatic changes in equity, currency and interest rate markets since late 2007, the first half result shows significant resilience.

"Revenues actually grew in constant dollar terms and were largely maintained in reported terms, with the reported US dollar figure falling one per cent in comparison to the previous two halves," it added.

"Unprecedented falls in interest rates, a substantial strengthening of the US dollar and very little initial public offer activity were significant contributors to the decline in earnings."