Half Year 2025 Iress Ltd Earnings Call Transcript
Key Points
- IRESS Ltd (ASX:IRE) reported a 6.8% increase in revenue for the first half of 2025, driven by strong performance in trading and UK businesses.
- Adjusted EBITDA rose by 8.7% to $60.2 million, with margins improving by 42 basis points to 24.1%.
- The company declared an interim dividend of $0.11 per share, 50% franked, reflecting confidence in its financial position.
- Recurring revenue remains robust at over 94%, providing a stable and reliable income stream.
- IRESS Ltd (ASX:IRE) has a strong client retention rate, with more than 90% of its top 20 clients having been with the company for over a decade.
- The company is undergoing a stranded cost program to reduce corporate costs by $12 million to $16 million over the next two years, indicating ongoing restructuring needs.
- Operating costs increased by 6.2%, partly due to adverse currency effects and increased R&D investment.
- The APAC Wealth segment experienced a revenue decline due to a client restructure in mid-2024.
- The divestment of certain businesses has impacted overall adjusted EBITDA, which was down 3.9% to $64.4 million.
- There is uncertainty around the timeline and revenue impact of new AI-driven products, with significant benefits expected only in the longer term (2028-2030).
Thank you for standing by, and welcome to the Iress Limited 2025 half-year financial results conference call. (Operator Instructions)
I would now like to hand the conference over to Mr. Marcus Price, our CEO. Please go ahead.
Thanks very much for the introduction. I'm delighted to be here today to take you through the first-half results of 2025 for Iress. I'm joined today by our CFO, Cameron Williamson.
I will first provide an overview of our strong first-half results and our strategic achievements before Cameron will take you on a deep dive in the financials and our framework to support what we think are some exciting growth initiatives. I'll then talk through our growth strategy and the outlook for the remainder of the year.
As you know, we did make an announcement on Friday relating to private equity interest in Iress. We do not intend to be commenting on that today. We're here to discuss today what we think is a great first half performance
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