Information Services Corporation - Services division set to be a key organic driver

In FY23 Information Services Corporation (ISC) remained on a positive trajectory of securing new contracts and customers, despite prevailing macroeconomic headwinds and a subdued Canadian property market. We expect this momentum to continue in FY24, bolstered by the Services division, the key organic engine of the group. Management has reaffirmed FY23 revenue and adjusted EBITDA guidance of C$207–212m (Edison: C$210m) and C$71–76m (Edison: C$75m), respectively. In addition, FY24 guidance has been introduced; our FY24e adjusted EBITDA estimate of C$90m falls within the guided range of C$83–91m, while our conservative FY24e revenue estimate of C$230m is marginally below the guided C$240–250m range. We will update our estimates following the release of FY23 results in early March.