Broadridge Financial Services (BR) Q1 2016 Earnings

Broadridge (BR) CEO Richard Daly said their financial institution customer base remains under pressure

I’m confident in our sales trajectory over the long term, because the large financial institution we serve remain under intense return-on-equity pressure, and we represent a reliable way to address  some of this pressure. Given the environment, we continue to experience pricing pressure. I don’t recall a timing during my tenure as CEO, where we didn’t see pricing pressure. Pricing pressure has been more than offset by new sales opportunities.”

Customers continue to focus on reducing expenditures

“We are seeing an increasing willingness to outsource non-differentiating functions to reduce cost. An increasing regulatory complexity also creates more opportunity for Broadridge as firms struggle to remain compliant and competitive within an ever-changing industry landscape. The Department of Labor, or DOL, Conflict of Interest rule is an example of this.

Continuing to invest resources in the blockchain

Blockchain continues to be an area of critical focus across all of our business lines. It seems you can’t pick up an industry publication without reading about the power and potential of blockchain technology. We are pleased with our investment in an innovative leader like Digital Asset Holdings and we’ll look for other ways to invest when the opportunity is aligned to our long-term strategic goals.”

Broadridge’s various businesses are aided by some key secular tailwinds

The financial services industry continues to revolve driven by the secular trends of mutualization, digitization and data and analytics. Enabled by these key trends, we believe that there are multiple paths to achieving our longer-term objectives.”