About a-team Marketing Services
The knowledge platform for the financial technology industry
The knowledge platform for the financial technology industry

A-Team Insight Blogs

Interactive Data Experienced Strong Growth in Q4 2008, Says Exiting CEO Clark

Subscribe to our newsletter

Despite the downturn in the markets, it seems that Interactive Data had a good end to 2008 in terms of financial results. The data vendor’s fourth quarter results for last year indicate that its revenue was up 6.6% on previous year’s figures to US$194.1 million from US$182.1 million in the fourth quarter of 2007. “Despite the unprecedented events across the global financial marketplace that occurred during the fourth quarter, our business remained resilient,” says Stuart Clark, president and CEO of Interactive Data, who is due to retire in March.

Income from operations grew 27% to US$57.1 million in the fourth quarter of 2008 from US$45.0 million in the same period in 2007. Net income for the fourth quarter of 2008 was US$40.1 million, a 25.8% increase over net income of US$31.9 million in the previous year.

According to Clark, new sales in the fourth quarter of 2008 were strong and renewal rates across the vendor’s institutionally oriented business were approximately 95%.

Clark says that the overall growth was primarily driven by new sales, higher usage and the revenue contribution from acquired businesses. The vendor was particularly acquisitive last year within its Pricing and Reference Data business with the purchase of businesses in Italy and Japan.

The vendor purchased Italian provider of reference data, Kler’s Financial Data Service, in August 2008, which contributed revenue of US$1.8 million in the fourth quarter of 2008. The vendor also acquired an 80% majority interest in NDF, a provider of securities pricing, reference data and related services to financial institutions in Japan, in the fourth quarter. This business contributed US$0.5 million to the revenue for the quarter.

Andrew Hajducky, Interactive Data’s executive vice president and chief financial officer, indicates that the vendor will be seeking to acquire more businesses over the course of 2009. He describes the vendor as “well positioned” to expanding the business in this manner.

Clark adds: “Moving forward, we expect to continue encountering uncertain market conditions in 2009. Customers will likely be grappling with their need to contain or reduce costs while adapting to powerful trends affecting their businesses that may require additional market data or related services. These trends include heightened scrutiny on their valuation processes, increased regulation, the proliferation of automated trading systems and the need to differentiate their wealth management platforms.”

On a geographic basis, the fourth quarter saw the biggest growth in the Asian region with an increase of 13% on the previous year’s figures, to US$4.7 million from US$4.1 million. This was closely followed by North America with an increase of 8.2% to US$138.2 million from US$127.7 million in the same period last year. Europe brought up the rear for the quarter in terms of growth with 2% to US$51.2 million from US$50.2 million in the comparable period one year ago.

As a business unit, Interactive Data Pricing and Reference Data reported a fourth quarter 2008 revenue of US$124.5 million, a 9% increase over the prior year’s fourth quarter.

Subscribe to our newsletter

Related content

WEBINAR

Upcoming Webinar: In data we trust – How to ensure high quality data to power AI

13 March 2025 11:00am ET | 3:00pm London | 4:00pm CET Duration: 50 Minutes Artificial intelligence is increasingly powering financial institutions’ processes and workflows, encompassing all parts of the enterprise from front-office to the back-office. As organisations seek to gain a competitive edge, they are trialling the technology in variety of ways to streamline and...

BLOG

Data Modernisation is Anything but Simple: DMS NYC Report

Modernisation and simplification of data architectures has become a mantra for financial institutions as they seek to get the most out of their data – but it’s a goal that’s beset by many challenges. Not least among them is change management; convincing the organisation’s chief financial officer and engineering teams that a transformation of its...

EVENT

Future of Capital Markets Tech Summit: Buy AND Build, London

Buy AND Build: The Future of Capital Markets Technology London on September 19th at Marriott Hotel Canary Wharf London examines the latest changes and innovations in trading technology and explores how technology is being deployed to create an edge in sell side and buy side capital markets financial institutions.

GUIDE

Regulatory Data Handbook 2024 – Twelfth Edition

Welcome to the twelfth edition of A-Team Group’s Regulatory Data Handbook, a unique and useful guide to capital markets regulation, regulatory change and the data and data management requirements of compliance. The handbook covers regulation in Europe, the UK, US and Asia-Pacific. This edition of the handbook includes a detailed review of acts, plans and...