February 19, 2009

Dow Jones Newswires

Interactive Data 4Q EPS 42c

Interactive Data Corp.'s (IDC) fourth-quarter net income grew 26% on sales gains bolstered by acquisitions, as the company projected strong 2009 growth.

Global spending by the securities industry on data, largely through leasing desktop terminals, is forecast to shrink by about 3% according to a report published this week by data specialist Burton-Taylor International Consulting LLC.

 

Global spending by the securities industry on data, largely through leasing desktop terminals, is forecast to shrink by about 3% according to a report published this week by data specialist Burton-Taylor International Consulting.

Thomson Reuters Corp. (TRI) and Bloomberg LP, which have a large portion of the market share in the U.S. and Europe, are expected to bear the brunt of the cuts. But Burton-Taylor said smaller providers that are less expensive, such as Interactive Data and FactSet Research Systems Inc. (FDS), could benefit at the expense of their larger rivals.

Interactive Data, a provider of real-time market data to traders and investors, reported net income of $40.1 million, or 42 cents a share, up from $31.8 million, or 33 cents a share, a year earlier.

Revenue increased 6.6% to $194.1 million. Excluding the effects of the stronger dollar and acquisitions, revenue rose 13% on demand gains.

Revenue for interactive data pricing and reference data, which provides global security pricing and evaluations to support financial institutions, grew 9% amid an acquisition. ESignal, which provides real-time financial market data services, posted a 0.1% increase as higher fees were offset by a decline in the number of direct subscription terminals.

North American revenue rose 8.2%, primarily due to growth in the company's pricing and reference data business. Europe reported a 2% increase while the Asia-Pacific region jumped 13%.

Looking ahead, the company said progress in 2009 may be offset by currency impacts, but Interactive data still expects another year of "solid organic revenue and profit growth."

In December, the company boosted its quarterly dividend payment 33% at a time when numerous companies have been cutting dividends to save capital.

Shares were up 5.02% to $23.83 in early trading Thursday. The stock is down 20% the past year, a smaller decline than the market average.

by John Kell and Katherine E. Wegert