H&R Block revenues rise despite handling fewer tax returns

H&R Block handled nearly 1 percent fewer tax returns in the just completed tax season.

The 20.49 million returns handled by the Kansas City-based company fell 0.9 percent short of the 20.68 million it handled a year ago. Much of the drop came at Block stores, which saw a 4.6 percent decline in returns prepared.

Digital filings through H&R Block’s software, online and mobile services increased 8.2 percent from a year ago.

Financially, Block said it collected more revenues from customers despite handling fewer total returns. It also said its profit margins were as executives had expected them to be. The company did not release financial totals.

“Though our assisted return volume declined, we expect to report revenue growth for the second consecutive year,” chief executive Bill Cobb said in the company’s announcement.

The company previously reported that its volume of tax filings was down through the first half of the tax season. Cobb had said then that volumes would increase but that he did not expect to be able to make up all of the shortfall by the April 15 filing deadline.

He also had said revenues were getting a boost as Block employees were offering customers additional products, such as the company’s prepaid debit card.

Cobb, in the announcement Thursday, noted that this was the first year that tax returns for many filers involved reconciling insurance premium benefits they had received under the Affordable Care Act. He did not say how much the health law affected H&R Block’s business financially.

“This was the first tax season in what we’ve said will be a multi-year journey to fully realize the impacts of the ACA, and I believe we are well positioned as the industry’s ACA experts,” Cobb said.

H&R Block plans to report its full-year financial results June 8.

This story was originally published April 23, 2015 at 6:26 PM with the headline "H&R Block revenues rise despite handling fewer tax returns."