NEW YORK – HR Block Inc. said Thursday that its fiscal fourth-quarter profit fell 5 percent, as revenue declined and the company booked charges related to its loss of its refund-backed loan program.
After the nation’s largest tax preparation company lost its refund loan business due to regulatory decisions, it shifted its focus toward beefing up its online tax preparation offerings and targeting younger customers with free simple tax form preparation. The moves paid off in helping HR Block gain market share during the quarter. Block prepared 21.4 million tax returns this year, up 6.5 percent from 2010.
While the free tax prep service contributed to lower revenue during the quarter, the company argues it has created a pool of new customers that can be converted to more expensive return preparation in years to come.
The latest quarter included other big changes for the Kansas City, Mo.-based company. Activist investor Richard C. Breeden stepped down as chairman at the end of this year’s tax season and Block in April named board member and former eBay executive William C. Cobb as its new president and CEO, replacing Alan Bennett, who is retiring in September
Block said it earned $658.6 million, or $2.14 per share, in
Read More from the Article Source: Full Article
