Moody’s reported revenue of $564.3 million for the three months ended December 31, 2010, an increase of 16% from $485.8 million for the fourth quarter of 2009. Operating income for the quarter was $196.6 million, up 10% from $178.9 million for the same period last year.
Moody’s Corporation revenue for the full-year 2010 totaled $2,032.0 million, an increase of 13% from $1,797.2 million for 2009. U.S. revenue of $1,089.5 million grew 18%, while non-U.S. revenue of $942.5 million rose 8% from the prior year.
Operating income of $772.8 million increased 12% from $687.5 million in 2009, and operating margin was 38.0% for the full-year 2010. The impact of foreign currency translation on revenue and operating income was negligible.
Revenue at Moody’s Investors Service (“MIS”) totaled $1,405.0 million for the full-year 2010, an increase of 15% from the prior-year period. U.S. revenue of $815.4 million grew 23%. Non-U.S. revenue of $589.6 million was up 6% from the prior year and represented 42% of MIS revenue, down from 46% in 2009. The highest growth came from corporate finance, while revenues for structure finance are still contracting.
Full-year 2010 expense for Moody’s Corporation of $1,259.2 million was 13% higher than the prior year. Excluding restructuring-related items in 2009, Moody’s 2010 expenses increased 15% over 2009
Fourth quarter 2010 expense for Moody’s Corporation of $367.7 million was 20% higher than in the prior-year period and reflected headcount increases and higher accruals for incentive compensation and profit sharing. The impact of foreign currency translation on fourth quarter expense was negligible. Moody’s reported operating margin for the fourth quarter of 2010 was 34.8%.
Outlook for 2011: Moody’s expects full-year 2011 revenue to increase in the high-single-digit percent range. Full-year 2011 expenses are expected to increase in the mid- to high-single-digit percent range. Full-year 2011 operating margin is projected between 38% and 40%. Source: Moody’s Earnings Release