Iress Earnings: Turning Around Gradually

Narrow-moat Iress’ 2023 results were slightly better than expected. Underlying EBITDA fell by 12% from the prior year to AUD 128 million, above our prior forecast of AUD 123 million. The main driver was lower operating costs, driven by a new cost-out program, which boosted second-half EBITDA by 16% from the first half. Cost-outs will continue into 2024, with further savings expected. The 2% revenue growth was commendable as disruptions in the wealth management sector throughout 2023 hit trading volumes and the uptake of ancillary products. Second-half revenue in the flagship wealth and trading and market data divisions also grew relative to first-half 2023 and second-half 2022, indicating a potential revenue recovery from recent cyclical headwinds.