H&R Block revenue drops early in tax season
H&R Block Inc. reported that its revenues declined $22.7 million in the third fiscal quarter of 2017 due to the delayed tax season. Total revenues decreased to $451.9 million.
The company’s total operating expenses declined $17.7 million to $576.7 million, primarily due to cost reduction efforts, which led to lower compensation and benefits and marketing costs.
The tax prep chain said it typically reports a fiscal third quarter operating loss due to seasonality, and that its assisted and DIY prep businesses achieved market share gains in the first half of the tax season.
H&R Block’s return volume declined 7 percent through Feb. 24, outperforming IRS-reported e-filing declines of 10 percent.
While overall industry and company volume is expected to improve during the second half of the tax season, Block’s performance relative to the industry is expected to moderate given the conclusion of its Free Federal 1040EZ and Refund Advance promotions on Feb. 28, the company added.