S&P Global reported fourth quarter 2021 revenue of $2.09 billion, an increase of 12% compared to the same period in 2020 with growth in all four businesses.

For the full year, revenue increased 11% to $8.30 billion.  2021 net income increased 29% to $3.02 billion and diluted earnings per share increased 29% to $12.51.  2021 adjusted net income increased 17% to $3.31 billion and adjusted diluted earnings per share increased 17% to $13.70.

S&P Dow Jones Indices:

4th Quarter, 2021:  Revenue increased 18% to $303 million in the fourth quarter of 2021.  Revenue improved primarily due to increased asset-linked fees and exchange-traded derivatives.  Average AUM in exchange-traded funds based on S&P DJI’s indices was $2.7 trillion in the quarter, an increase of 43% versus the fourth quarter of 2020.

Operating profit increased 22% to $199 million. Operating profit margin improved 220 basis points to 65.6% primarily due to revenue growth as well as restructuring expense and lease impairments incurred in the prior period.  Operating profit attributable to the Company increased 23% to $145 million.  Adjusted operating profit increased 13% to $199 million.  Adjusted operating profit margin decreased 280 basis points to 65.7% due to unusually high expenses during the quarter.  Adjusted operating profit attributable to the Company increased 11% to $145 million.

2021: Revenue increased 16% to $1,149 million and operating profit increased 20% to $798 million.   Operating profit margin improved 210 basis points to 69.5%.  Operating profit attributable to the Company increased 20% to $583 million.  Adjusted operating profit increased 17% to $803 million.  Adjusted operating profit margin improved 80 basis points to 69.9%. Adjusted operating profit attributable to the Company increased 17% to $588 million.

Ratings:

4th Quarter, 2021: Revenue increased 12% to $989 million.  Non-transaction revenue increased 7% to $485 million during the quarter primarily due to fees associated with surveillance, CRISIL, and new-entity credit ratings.  Transaction revenue increased 18% to $504 million in the fourth quarter primarily due to strength in investment-grade corporate bonds, bank loans and structured products. 

Operating profit increased 24% to $575 million and operating profit margin increased 530 basis points to 58.1%.  Adjusted operating profit increased 18% to $570 million and adjusted operating profit margin improved 300 basis points to 57.6% in the quarter.

2021:  Revenue increased 14% to $4.10 billion and organic revenue increased 13% as global bond and leveraged loan issuance increased 15% in 2021.  Operating profit increased 18% to $2.63 billion and operating profit margin improved 260 basis points to 64.2%.  Adjusted operating profit increased 17% to $2.63 billion compared to 2020 and adjusted operating profit margin improved 180 basis points to 64.2%. 

Platts:

4th Quarter, 2021:  Reported revenue increased 12% to $249 million with growth in the core subscription business and increased Global Trading Services activity.  Operating profit increased 25% to $125 million and operating profit margin improved 520 basis points to 50.0% primarily due to restructuring expense in the prior period.  Adjusted operating profit increased 8% to $125 million and adjusted operating profit margin decreased 160 basis points to 50.1% as growth investments impacted near-term profitability.

2021:  Revenue increased 8% to $950 million.  Operating profit increased 13% to $517 million and operating profit margin increased 230 basis points to 54.4%.  Adjusted operating profit increased 9% to $523 million and adjusted operating profit margin improved 40 basis points to 55.1%.

Market Intelligence:

4th Quarter, 2021:  Reported revenue increased 8% to $584 million in the fourth quarter with growth in Data Management Solutions, Desktop, and Credit Risk Services.  Operating profit increased 41% to $169 million and operating profit margin increased 680 basis points to 29.0%, primarily due to a restructuring expense in the prior period.  Adjusted operating profit increased 15% to $191 million and adjusted operating profit margin improved 200 basis points to 32.7%.

2021:  Revenue increased 7% to $2.25 billion and operating profit increased 19% to $703 million.  Operating profit margin increased 330 basis points to 31.3%.  Adjusted operating profit grew 13% to $771 million and adjusted operating profit margin improved 190 basis points to 34.3%.

Corporate Unallocated Expense:

4th Quarter, 2021:   This expense decreased by 15% to $164 million primarily due to lease impairments and restructuring expense in the prior period.  Adjusted Corporate Unallocated expense increased by 38% to $49 million due to increased incentive compensation, professional fees, and the timing of contributions to the S&P Global Foundation.

2021:  This expense increased by 33% to $426 million primarily due to $249 million of expenses related to the pending IHS Markit merger.  Adjusted Corporate Unallocated expense increased by 16% to $148 million.

Balance Sheet and Cash Flow:  Cash and cash equivalents at the end of 2021 were $6.5 billion.  For full-year 2021, cash provided by operating activities was $3.6 billion.  Free cash flow was $3.3 billion, an increase of $39 million from 2020.  Free cash flow, excluding IHS Markit merger costs was $3.5 billion, an increase of $217 million over 2020. 

Source: S&P Global Earnings Release