Financial technology firm Iress says superannuation has seen a 20 per cent growth in revenue in the first half of 2023.
In its half-year results for the period to 30 June, the technology firm said revenue was driven by super and managed fund administration (MFA).
Operating revenue in super rose from $23.6 million in the first half of 2022 to $28.3 million in the first half of 2023, a rise of 20 per cent.
New client wins in super included the merged entity of Spirit Super and CareSuper. The two funds have entered into a binding agreement and are due to complete the merger in late 2024.
Iress’ super administration technology includes fund registry, digital member portal, digital advice solutions, and fund administration services.
Total Iress revenue for the period was $315 million, up from $308 million a year ago.
“The superannuation business continues to show signs of growth with revenue up 20 per cent due to new clients going live as well as increased client project activity,” the firm said in a statement to the ASX.
“This strong performance was driven by a super administration client going live in April 2022, price increases and higher non-recurring revenue as a result of increased client project activity.”
The firm has undertaken a transformation project that saw a new chief executive appointed to be dedicated to super, one of four separate divisions. Paul Giles joined the firm in February 2022 from Mercer as head of super – strategic markets and was appointed CEO of super in March 2023.
It also appointed James Sinclair in July as head of growth and partnerships for super, having previously worked as a sales manager for super and wealth at SS&C Technologies.
Finally, it launched a super fund digital advice offering called SuperSmart that combines digital advice with personalised financial education.
Reflecting on the results, Iress CEO Marcus Price said: “Our half-year results represent Iress mid-transformation with many of the benefits including the cost reduction program and a review of pricing to be recognised in the full year results for 2023 and in FY24.
“Despite this, revenue increased in a challenging macro environment while EBITDA was impacted by cost pressures, including a significant uplift in tech infrastructure, market data and inflationary salary costs.”
