The Iress Limited (ASX: IRE) share price is relatively flat after the company announced its financial results for the 6 months to 30 June 2019 today.
What did Iress announce?
Iress is a technology company that provides software to the financial services industry, providing trading and market data and investment management information. The company's software is used by more than 9,000 businesses and boasts 500,000 users in Asia Pacific, Europe, North America and Africa.
The company's financial report saw segment profit increase 10% on the previous corresponding period with revenue growth driven by key businesses.
Highlights of Iress' financial report include:
- Group revenue up 5% to $241.8 million
- Group segment profit up 10% to $74.1 million
- Reported net profit after tax (NPAT) of $30.4 million
- Net debt balance of $193.3 million
- 10% franked interim dividend of 16 cents per share
Iress also reported that the company expects FY19 guidance to remain unchanged and in line with guidance.
How did Iress perform?
Iress' financial report outlines that growth has been driven by continued demand from private wealth and mortgages. Australian finance advice and revenue growth also continues, with increasing demand for data capability.
The successful acquisition of international market data provider QuantHouse has also aligned with Iress' strategy to service the global demand for market data. Iress chief executive Andrew Walsh said "demand and delivery for our software and services remains strong and technology continues to play an increasingly important role for financial services businesses globally."
Iress' APAC segment saw operating revenue increase 3% to $128.2 million due to strong demand from clients for software that provides live data and risk management. Trading and market data revenue also remained resilient, with revenue growth in Asia being driven by the rollout of online trading software Viewpoint.
Outlook for Iress
Iress continues to expect segment profit growth for FY19 to be between 6 and 11% on a constant currency basis. Non-operating costs are expected to be substantially lower for FY19 following the company's targeted and elevated investment decisions. The acquisition and integration of QuantHouse is expected to contribute around $4 to $6 million to non-operating costs. Beyond 2019, Iress expects continued industry change as a result of global economic uncertainty.
