Super M&A activity weighs on Link revenue

24 February 2022
| By Laura Dew |
image
image
expand image

Industry merger activity has led to revenue for Link’s retirement and superannuation solutions (RSS) business declining 2.3%.

In its results for the six months to 31 December, 2021, the firm said RSS revenue declined 2.3% to $252.2 million while recurring revenue was down 1.3%.

Increased member numbers and service contracts were offset by client exits due to industry merger activity. However, 340,000 new members were expected to be added in Q4 FY22.

In its fund solutions business, revenue was $93.6 million thanks to the completion of an acquisition and favourable equity markets.

Chris Addenbrooke would be retiring as chief executive of the funds solution business and would be replaced by Karl Midl, who joined the firm in 1995.

The group’s statutory net loss after tax was $81.7 million, compared to a loss of $163 million at the end of June 2021, and was due to a non-cash impairment charge of $81.6 million.

Net operating cashflow was down 35% from $192.3 million to $125.7 million while revenue was down 0.6% from $597 million to $593.6 million.

The company declared a final fully-franked dividend of three cents per share.

Vivek Bhatia, chief executive and managing director, said: “Link Group continues to deliver in a challenging operating environment.

“We are on track to deliver on our transformation program commitments by financial year end and continue to see benefits from our global hub strategy in the form of increased efficiencies and automation.”

Read more about:

AUTHOR

Recommended for you

sub-bgsidebar subscription

Never miss the latest developments in Super Review! Anytime, Anywhere!

Grant Banner

From my perspective, 40- 50% of people are likely going to be deeply unhappy about how long they actually live. ...

11 months ago
Kevin Gorman

Super director remuneration ...

11 months 1 week ago
Anthony Asher

No doubt true, but most of it is still because over 45’s have been upgrading their houses with 30 year mortgages. Money ...

11 months 1 week ago

The proposed reforms have been described as a key step towards delivering better products and retirement experiences for members, with many noting financial advice remain...

54 minutes ago

Jim Chalmers has defended changes to the Future Fund’s mandate, referring to himself as a “big supporter” of the sovereign wealth fund, amid fierce opposition from the Co...

3 days 22 hours ago

Demand from institutional investors was the main driver of growth in Australia’s responsible investment (RI) market in 2023, as the industry continued to gain momentum....

3 days 22 hours ago