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IHS Markit returns to profit in Q4

17 January 2017

Merged business in "very solid financial position" says finance chief

IHS Markit returned to profit in its fourth quarter, bouncing back from a previous quarterly loss from merger-related costs.

The data and analytics firm, formed by last year’s tie-up between US-based IHS and London-based Markit, posted a quarterly profit of $89m.

That beat a net loss of $32m in its third quarter, primarily due to costs from the combination of both businesses.

Markit, founded in 2003 by ex-TD Securities credit trader Lance Uggla, provides pricing and reference data, index and valuation services.

Customers include banks, insurance firms, asset managers, hedge funds and regulators. 

IHS is best known for its energy, commodity and transportation sector analysis.

"Thanks to the tireless work by our colleagues we hit the ground running in December, the start of our first fiscal year as a new company," said Jerre Stead, IHS Markit chairman and chief executive officer.

Todd Hyatt, IHS Markit chief financial officer, added: "We are in a very solid financial position entering our first fiscal year as a merged company, with a business model that has favorable financial characteristics. The financial levers afforded to us from the merger allow us to invest in our future while delivering strong returns for our shareholders."

Q4 revenue totalled $874m for the enlarged company. The consolidated markets & solutions unit contributed $133m. Revenue from the financial services segment was $292m.

For the year to November 2017, the firm expects revenue in the range of $3.49bn to $3.56bn, up from last year’s $2.7bn. 

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