- Revenue Increased 3%; Excluding Foreign Exchange Impact, Revenue Increased 6%
- Diluted EPS from Continuing Operations Increased 23% to $1.28
- Adjusted Diluted EPS from Continuing Operations Increased 17% to $1.21
- Operating Margin Increased 670 Basis Points to 43.3
- Adjusted Operating Margin Increased 450 Basis Points to 41.1%
- Company also Announced Acquisition of SNL Financial
- 2015 Guidance Maintained Despite Anticipated Dilution from Acquisition
McGraw Hill Financial, Inc. (NYSE: MHFI) today reported second quarter 2015 results with revenue of $1.34 billion, an increase of 3% compared to the same period last year. Net income and diluted earnings per share from continuing operations were $353 million and $1.28, respectively.
“Excluding the impact of foreign exchange, the Company delivered 6% revenue growth. That, combined with excellent cost control, led to significant margin expansion by every business segment,” said Douglas L. Peterson, President and Chief Executive Officer of
McGraw Hill Financial. “This was particularly noteworthy in the face of declining oil prices, as well as turbulent global macroeconomic conditions, largely due to uncertainty surrounding Greece and China, which curtailed debt issuance outside the United States.”
Standard & Poor’s Ratings Services: The segment produced its second highest quarterly revenue compared to the record set one year ago in the same period. This year‐over‐year comparison reflects a 1% decline to $658 million in the current quarter, primarily due to unfavorable foreign exchange rates and tepid bond issuance outside the United States due to geopolitical concerns.
S&P Capital IQ: Revenue increased 6% to $324 million in the second quarter of 2015 compared to the same period last year. Expenses increased 3% and operating profit increased 15% to $63 million. Adjusted expenses decreased 1% and adjusted operating profit increased 37% to $74 million. The S&P Capital IQ Desktop product continues to have the most meaningful impact on revenue with low‐teens revenue growth resulting from a similar increase in the number of
users. S&P Capital IQ’s international revenue increased 5% to $112 million in the second quarter and represented 35% of the business unit’s total revenue.
S&P Dow Jones Indices: Revenue increased 11% to $148 million in the second quarter of
2015 compared to the same period last year. Operating profit increased 16% to $96 million. Operating profit attributable to the Company increased 16% to $71 million. Top‐line growth in the quarter can be attributed to licensing revenue associated with increased exchange‐traded fund AUM, derivative trading, and data subscriptions. AUM in exchange‐traded funds based on S&P Dow Jones Indices increased 10% to $792 billion at the end of the quarter.
Commodities & Commercial Markets: Revenue increased 7% to $234 million. Operating profit grew 13% to $87 million and adjusted operating profit grew 15% to $88 million in the second quarter of 2015 compared to the same period last year. Despite depressed oil prices, Platts continued to experience steady revenue growth in the high single‐digits as a result of strength in price assessments and market data subscriptions. Based on recent product additions, revenue from the Metals, Agriculture & Petrochemicals group was particularly robust. In addition, licensing revenue from Global Trading Services increased primarily due to The Steel Index derivative activity and record eWindow trading volumes.
J.D. Power delivered a low single‐digit increase in revenue with its Power Information Network (PIN) leading the growth. Two businesses were recently added to the Commodities & Commercial Markets segment. Platts acquired Petromedia Ltd. to add to its petroleum business and J.D. Power added NADA Used Car Guide to complement its PIN offering.