(Reuters) – MSCI reported a second-quarter adjusted profit on Tuesday that rose nearly 12% as improved spending by clients drove up demand for the company’s index products and analytics services.
WHY IT’S IMPORTANT
Firming bets of a “soft landing”, where inflation falls without a recession or big job losses, have encouraged investors to spend on risk-hedging and research products.
Market volatility sparked by shifting expectations of an interest rate cut also boosted demand for data and products provided by companies such as MSCI.
KEY QUOTE
“MSCI is expanding our footprint among large and rapidly growing client segments while strengthening our position among more mature and traditional segments,” CEO Henry Fernandez said.
BY THE NUMBERS
Total recurring subscriptions revenue for the second quarter rose 14.4% to $521.5 million, while its index segment revenue gained nearly 10% to $397.2 million.
On an adjusted basis, MSCI earned $3.64 per share, up from $3.26 a share.
MARKET REACTION
The company’s shares rose 4.9% to $531 in premarket trading.
(Reporting by Jaiveer Singh Shekhawat in Bengaluru; Editing by Shounak Dasgupta)
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