Link Administration Holdings (ASX: $LNK) 1H FY24 Financial Results

Link Administration Holdings Limited (ASX: $LNK) has reported its financial results for the 6 months to 31 December 2023 (1H FY24), demonstrating a robust performance with double digit revenue and operating EBIT growth. The company's 1H FY24 revenue increased by 13.8% to $523.7 million, while operating EBIT grew by 10.8% to $90.8 million. Link Group's CEO & Managing Director, Vivek Bhatia, reaffirmed the FY24 guidance, expecting continued growth in both revenue and operating EBIT.

Executive Commentary on 1H FY24 Results

Link Group's CEO & Managing Director, Vivek Bhatia, highlighted the company's strong financial performance in 1H FY24, with operating EBIT reaching $90.8 million, in line with the guidance provided at the AGM. Bhatia emphasized the completion of the business simplification strategy with the sales of Banking & Credit Management (BCM) and Fund Solutions (FS) UK and Ireland businesses. He also expressed confidence in the company's focus on Retirement and Superannuation Solutions (RSS) and Corporate Markets (CM), which has enabled sustainable revenue growth and the delivery on earnings guidance.

Summary of 1H FY24 Results and Outlook

Link Administration Holdings has delivered a strong financial performance in 1H FY24, with double digit revenue and operating EBIT growth. The company's focus on Retirement and Superannuation Solutions (RSS) and Corporate Markets (CM) has driven sustainable revenue growth, with RSS delivering solid momentum in underlying member growth and recent acquisitions, and CM reflecting higher margin income and good recurring revenue growth. The company reaffirmed its FY24 guidance, expecting at least 6.5% revenue growth and 7%-9% operating EBIT growth. Link Group's ambitions for the future include the completion of the transaction with Mitsubishi UFJ Trust & Banking Corporation, which is expected to provide a solid platform for strong revenue growth over the next 3-5 years. The company remains confident in its ability to deliver consistent and sustainable growth, supported by its resilient financial performance and market leading businesses.