What a difference two quarters make. Following a great first half the revenue growth in rating services has slowed significantly in the second half. For 2014 Moody’s expects revenue growth to be in the mid-single digit range.
Moody’s reported revenue of $779.2 million for the three months ended December 31, 2013, up 3% from $754.2 million for the fourth quarter of 2012. Operating expenses for the fourth quarter of 2013 totaled $467.3 million, 5% lower than in the prior-year period. Operating income for the quarter was $311.9 million, a 20% increase from $260.2 million for the same period last year.
Moody’s Corporation revenue for full-year 2013 totaled $2,972.5 million, an increase of 9% from $2,730.3 million for 2012. Operating expenses for full-year 2013 totaled $1,737.9 million, 5% higher than a year ago. Operating income of $1,234.6 million increased 15% from $1,077.4 million in 2012.
“Moody’s delivered strong financial performance throughout 2013, including revenue growth in all lines of business, margin expansion and 18% reported EPS growth,” said Raymond McDaniel, President and Chief Executive Officer of Moody’s. “While we anticipate variable market conditions in 2014, we nonetheless expect revenue growth across all areas of our business, as well as growth in earnings per share to $3.90 to $4.00.”
Source: Moody’s Press Release