Investments helped DST Systems Inc. report a 7.7 percent increase in first-quarter profits, the Kansas City-based company said Thursday.
DST earned $100.4 million, or $2.37 a share, compared with $93.2 million, or $2.04 a share, a year earlier. Revenues were flat at $683.8 million but benefited from a 15 percent increase in revenues from the company’s health care services business to $92 million.
The sale of shares in State Street Corp. during the quarter brought $44.6 million, and receipts from private equity and private company investments added $59.1 million. Both totals were before taxes.
“We have continued to effectively utilize our (financial) liquidity to advance our business strategy, with a focus on investing in activities that drive recurring revenue,” chief executive officer Steve Hooley said in the announcement.
DST said its financial services business processed 98.1 million U.S. mutual fund accounts at the end of March, up from 95 million a year earlier. It showed an increase in the percentage of accounts that are now in subaccounting relationships that earn less revenue than the individually registered account work DST has done traditionally.
Shares of DST fell 17 cents and closed at $94.15 following the earnings report.