The Kansas city based H&R Block, one of the world’s best tax service provider since 1955, has released its first quarter results for fiscal 2009, showing a decline in its quarterly loss, the main reason behind which was, losses of its financial services division being offset by profits from its tax services business.
The company serving 400 million clients and generating a revenue of $4.4 billion in 2008, has reported losses of $132.7million or 41 cents per share, for the Q1, which certainly is an upward swing than before when the loss was that of $302.6 or 93 cents a share.
According to the company, its tax services had shown a lot of improvement in it’s off season results however; these were off set by the increase in losses asset write downs and loss reserves. The losses amounted to $20.4 million.
As a result of these losses the revenue for the first quarter saw a big dip from $381.2 million last year to $339.6 million this time.
The company provides services related to income tax return preparation and products and services related to the same. It runs a network of 13000 company-owned, as well as franchised offices. It provides financial services through – RSM Mc Gladrey and TaxCut(R) online and software solutions.
However, the company has discontinued certain operations, especially sub prime mortgage businesses, losses from which amounted to $3.4 million, quite an improvement as compared with a net loss of $192.8 million a year ago in the same quarter.
“Tax services reported solid top-line growth during the preseason period while also achieving meaningful expense control,” said the chief executive, Russ Smyth.
He also added that one of the main reasons behind results from the consumer financial services going down was the negative impact of the “difficult conditions” in the housing as well as financial markets.
Post new comment