In the second quarter of fiscal year 2025, noteworthy financial results were reported, showcasing a significant increase in revenues. For the three-month period ending December 31, 2024, total revenues surged by 13% to $1.589 billion, compared to $1.405 billion in the same quarter of the previous year.
The growth in recurring revenues, which rose by $81 million or 9%, brought the total to $980 million. This increase was primarily the result of new business acquisitions in Investment and Communications Solutions (ICS) alongside internal growth and acquisitions in the Global Technology Operations (GTO) segment.
Moreover, event-driven revenues skyrocketed, increasing by $69 million or a remarkable 126%, totaling $125 million. This spike was attributed to a higher volume of mutual fund communications during the reporting period. Distribution revenues also experienced growth, rising by $34 million or 7%, largely influenced by a postage rate increase which accounted for approximately $30 million.
On the profitability front, operating income saw a substantial boost, climbing by $86 million or 69% to reach $211 million. The operating income margin improved to 13.3%, which is a notable increase from the 8.9% margin recorded in the same quarter last year. This improvement was primarily driven by the surge in both recurring and event-driven revenues.
When adjusted for operational considerations, adjusted operating income rose to $263 million, marking an increase of $89 million or 51%. The adjusted operating income margin also improved, reaching 16.6% compared to 12.4% in the previous year. An increase in distributions and float income contributed to this margin expansion, though the impact was described as immaterial.
Interest expenses netted $33 million, which reflected a decrease of $4 million compared to the previous year attributable to lower average borrowing rates. This reduction in interest expenses coincided with a 103% rise in net earnings, enabling these to reach $142 million. Adjusted net earnings also saw significant growth, increasing by 68% to $184 million.
Earnings per share demonstrated a stellar increase as well, with diluted earnings per share rising by 103% to $1.20 from $0.59 in the prior year quarter. Adjusted earnings per share showed a 70% increase, reaching $1.56 compared to $0.92 from the same period the previous year.
Meanwhile, losses before income taxes remained largely unchanged, resting at $48 million compared to $47 million in the earlier period.
In line with strategic expansion efforts, a notable acquisition was finalized on November 1, 2024, when the securities industry services business of Kyndryl was acquired for approximately $185 million in U.S. dollar equivalents. This acquisition was pivotal for enhancing the suite of wealth management, capital markets, and information technology solutions offered, particularly in the Canadian market, thus broadening the product offerings in the GTO segment.
Overall, the financial performance during this quarter reflects a strong growth trajectory driven by strategic initiatives and operational efficiencies, positioning the company favorably in the competitive landscape.