Misys Q1 revenue growth meets expectations

By Paul Sandle

LONDON (Reuters) - Banking and software group Misys (MSY.L) said on Tuesday first-quarter revenue rose 6 percent despite challenging market conditions, leaving it well placed to meet its full year target of growth of between 5 and 8 percent.

Shares in the group, which has outperformed the FTSE software and computer services index .FTASX9530 by 46 percent over the last year, had edged up 1 percent to 121 pence at 12:26 p.m., as analysts said the update contained few surprises.

"(It) shows the story unfolding as we anticipated: the productivity gains and costs savings associated with the turnaround programme, combined with growth in emerging markets and a broad customer base, have continued to insulate Misys from the turmoil in global financial services," said Derek Brown at Seymour Pierce.

The company said strength in its core markets has also positioned it well in the marketplace.

"Our experience in the first quarter gives us confidence in our performance for the rest of the year, despite the uncertainties prevalent in the current global market," Chief Executive Mike Lawrie said in a statement.

The company's banking business delivered 9 percent revenue growth, driven by an improvement in new licence fees and continued growth in services and maintenance.

Sales in its treasury and capital markets division, which serves more than half the Fortune global top 50 corporations, were up 12 percent, it said, with robust demand for services offsetting a drop in new licences.

Healthcare revenue was flat, the company said, which was expected ahead of its pending merger with Allscripts Healthcare Solutions (MDRX.O).