S&P Global (NYSE: SPGI) has reported third quarter 2019 results with revenue of $1,689 million, an increase of 9% compared to the same period last year.
Net income increased 25% to $617 million and diluted earnings per share increased 28% to $2.50 primarily due to revenue growth, continued progress toward productivity initiative targets, and gains from the divestments of RigData and Standard & Poor’s Investment Advisory Services LLC (“SPIAS”). Adjusted net income increased 13% to $606 million and adjusted diluted earnings per share increased 16% to $2.46 due to revenue growth and continued progress toward productivity initiative targets. The adjustments in the third quarter of 2019 were associated with gains on divestments as well as deal-related amortization and Kensho retention-related expenses.
“The diversity of our businesses was evident again this quarter as our Ratings and Indices divisions led growth due to an increase in bond issuance and growth in ETF assets under management coupled with increased exchange-traded derivative activity,” said Douglas L. Peterson, President and Chief Executive Officer of S&P Global.
“In addition to this strong growth, we launched several new technology-driven products including Textual Data Analytics and Kensho’s Scribe, which add new capabilities to our earnings call transcript business. New ESG-related products include Climate Risk Analysis by Trucost, the launch of Platts low-sulfur marine fuel futures contracts, and the launch of E-mini S&P 500 ESG Futures contracts. These financial results and new product launches demonstrate our continued execution on our investment and productivity initiatives.”
Profit Margin: The Company’s operating profit margin increased 720 basis points to 52.7% primarily due to revenue growth, continued progress toward productivity initiative targets, and gains from the divestments of RigData and SPIAS as well as lease impairments and restructuring charges in the prior period. The adjusted operating profit margin increased 230 basis points to 51.9% due to revenue growth and continued progress toward productivity initiative targets.
Return of Capital: During the third quarter, the Company returned $640 million to shareholders: $500 million in share repurchases through an ASR that was initiated in August and $140 million in dividends.
Source: S&P Global Earnings Release