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H&R Block said that targeted price cuts dampened results for the year ended April 30. Block did not disclose which market segments were the target for the pricing action, but said it will not expand the program.

Net income dropped to $422.5 million for the recently ended year, down 31.1 percent from $613.2 million for fiscal 2018. Revenue for fiscal 2019 was $3.1 billion, off 2.1 percent from $3.16 billion the prior year

“We do not believe we need to make further investments to reduce price,” CEO Jeff Jones said in this week’s webcast for 2019 earnings. He said Block has no intention of being a low-cost pricing leader in the tax preparation market.

D-I-Y software and services helpe results with 9 percent growth in clients leading to an overall 6 percent increase in customers. “We grew market share for the third year in a row,” Jones said.

The company says its program to provide professional tax advice to DIY clients was  successful. “One third of Ask a Tax Pro clients are new to H&R Block,” Jones said. He reported the Tax Pro Go program, also introduced this year, attracted younger customers with higher incomes. Tax Pro Go provides assisted preparation via the web.

Bob Scott
Bob Scott has provided information to the tax and accounting community since 1991, first as technology editor of Accounting Today, and from 1997 through 2009 as editor of its sister publication, Accounting Technology. He is known throughout the industry for his depth of knowledge and for his high journalistic standards.  Scott has made frequent appearances as a speaker, moderator and panelist and events serving tax and accounting professionals. He  has a strong background in computer journalism as an editor with two former trade publications, Computer+Software News and MIS Week and spent several years with weekly and daily newspapers in Morris County New Jersey prior to that.  A graduate of Indiana University with a degree in journalism, Bob is a native of Madison, Ind
Last modified on Tuesday, 11 June 2019
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