The Link Administration Holdings Ltd (ASX: LNK) share price is down another 3% in morning trade.

Link Group is a technology-enabled provider of outsourced administration services for superannuation fund administration, corporate markets and related value added services. The business has three key divisions: Fund Administration, Corporate Markets and Information, Digital & Data Services (IDDS). Link is the largest provider of services in Australia’s superannuation fund administration industry. It was listed on the ASX in 2015 and is growing internationally.

Link’s Updates

Yesterday after the market had closed Link provided two pieces of news to the market.

Link’s AustralianSuper Contract Extension

Link has extended its contract with AustralianSuper for a further four years starting on 1 July 2019 with two options for AustralianSuper to extend it for an additional year.

Link will continue to provide superannuation and ‘customer engagement’ services with automated back office processing and engagement activities from contact centre operations to insurance claims processing.

The key terms include a fee per member for core services in conjunction with transaction fees and free for services charges for relevant services, certain performance standards and a right to terminate for any material breach.

Link Managing Director John McMurtrie said: “As Australia’s largest superannuation fund, AustralianSuper is able to play a critical role in reshaping the value and uplifting expectations about what a super fund can deliver for members and their employers.”

Strategy Update

Link also updated investors about each of its business units and then gave FY20 guidance.

The financial services business is expecting FY19 (pro forma) operating EBITDA of $315 million to $325 million (click here to learn what EBITDA means), which would be a slight increase on the expected $309 million for this year.

Link also reaffirmed the integration efficiency target of more than £15 million for Link EMEA (Europe, Middle East and Asia), notwithstanding the sale of the Corporate & Private Clients business.

Are Link Shares A Buy?

There is plenty to like about Link, particularly the long term connection with superannuation, which is a growing sector. It could generate a high level of recurring revenue from its superannuation contracts for decades, assuming it keeps them for all that time.

But I think the reliable shares in the free report below could be even better picks.

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Disclaimer: Any information contained in this article is limited to general financial/investment advice only. The information has not taken into account your specific needs, goals or objectives, so please consider consulting a licenced and trusted adviser before acting on the information. Please read The Rask Group’s Financial Services Guide (FSG) for more information. This article is authorised by Owen Raszkiewicz of The Rask Group, which is a corporate authorised representative No. 1264179 of Strawman Pty Ltd (ACN: 610 908 211) (AFSL: 501 223).

At the time of publishing, Jaz does not have a financial interest in any of the companies mentioned.