Paychex Q1 total service revenue $773.5 millionStaff Writer | September 29, 2016
Paychex announced total service revenue of $773.5 million for the first quarter ended August 31, 2016), an increase of 9% from $712.2 million for the same period last year.
Paychex Net income increased 4% to $217.4 millio
Payroll service revenue increased 4% to $450.9 million for t he first quarter, compared to the respective period last year. This increase was driven by growth in client base and revenue per check. Revenue per check improved as a result of pri ce increases, net of discounts. Advance Partners contributed approximately 1% to the growth in payroll service revenue for the first quarter.
Human Resource Services (HRS) revenue was $322.6 million for the first quarter, an increase of 15% compared to the same period last year.
Strong demand for t hese services resulted in double- digit growth in the number of client worksite employees served as of August 31, 2016 as compared to August 31, 2015.
Retirement services revenue also benefited from an increase in asset fee revenue earned on the asset value of participant s’ funds.
Insurance services revenue benefited from continued growth of our full -service Affordable Care Act product and health and benefit applicants, coupled with higher average premiums and increase in clients in our workers' compensation insurance product. Advance Partners contributed approximately 2% to the growth in HRS revenue for the first quarter.
Interest on funds held for clients increased 11% to $12.0 million f or the first qu arter, compared to the respective period last year.
The increase resulted primarily from higher average inte rest rates earned. The funds held for clients average investment balances were down 1% for the first quarter primarily as a result of lower state unemployment insurance rates, partially offset by an increase in client base. ■