Index provider MSCI reported a rise in second-quarter profit on Tuesday as improved spending by clients increased demand for its index products and analytics services.
MSCI’s results often reflect sentiment in the broader market as clients use the company's stock indices and other tools to help them evaluate their investments.
“We saw more cash flows into equity ETFs [exchange traded funds] tied to our indices than any other index provider,” MSCI chair and CEO Henry Fernandez said.
Recurring subscriptions in the company’s index segment rose nearly 9% to $235.6m in the second quarter from a year earlier, driven by growth from market-cap weighted index products.
Total operating revenue rose almost 9% to $772.7m, helped by higher recurring subscription revenues. Operating expenses increased 6.8% as the company spent more on employee compensation and benefits.
The data provider reported a profit of $303.7m for the quarter ending June 30, or $3.92 a share, compared with $266.8m, or $3.37 a share, a year earlier.
Markets experienced a turbulent start in April due to US President Donald Trump’s shifting tariff policy, but a robust labour market and consumer spending fuelled an equities market rally later in the quarter.
The volatility index, which reflects the extent to which investors are taking protection against volatility, reached record levels but retreated later on expectations of trade deals.
Reuters
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