Markit Reports Solid Q1 2016 Metrics Amid Challenging Market Conditions
- Markit saw a rise in its key financial metrics despite reduced revenue in processing and the impact of acquisitions.
Markit Ltd. (Nasdaq:MRKT), a provider of financial information services, has announced its financial metrics for Q1 2016. The group reported mainly solid operating results, including a rise in revenues, helping the company secure QoQ growth in spite of challenging market conditions.
Revenue
For Q1 2016, Markit saw its revenues increase by $16.3 million to $287.8 million, up 6 percent QoQ from $271.5 million in Q1 2015. Organic revenue growth was $2.7 million, or 1 percent from Q1 2015. This was driven by new business wins across the company’s solutions and information segments, partially offset by a decrease in its processing segment.
Operating Expenses
Operating expenses increased by $13.7 million, or 9.3 percent, to $160.5 million for Q1 2016, from $146.8 million for Q1 2015, mainly due to increases in personnel costs and acquisitions.
Adjusted EBITDA and Adjusted EBITDA Margin
Adjusted EBITDA of $123.7 million for Q1 2016 increased by $3.0 million, or 2.5 percent, from $120.7 million for Q1 2015. This increase reflects the operating performance described above. Adjusted EBITDA includes a $3.0 million loss in Q1 2016 associated with the company’s share of the KYC joint venture included in its solutions segment.
Adjusted EBITDA margin decreased to 43.3 percent for Q1 2016, compared to 44.8 percent for Q1 2015 mainly due to the reduced revenue in the processing segment and the dilutive impact of acquisitions completed in 2015.
Markit has been an active participant in the Acquisition Acquisition Acquisition means acquiring or taking possession or the securing of property, services, or abilities. To put it simply, it is the act or process of acquiring or gaining. You can acquire a work of art, you can acquire an ability such as speaking another language, you can acquire a business or shares in a company and you can acquire an accountant's service. For example, you can acquire a new car. In a broad sense, Acquisition can mean the act of taking ownership or possession of something. There Acquisition means acquiring or taking possession or the securing of property, services, or abilities. To put it simply, it is the act or process of acquiring or gaining. You can acquire a work of art, you can acquire an ability such as speaking another language, you can acquire a business or shares in a company and you can acquire an accountant's service. For example, you can acquire a new car. In a broad sense, Acquisition can mean the act of taking ownership or possession of something. There space over the past few months. In its latest bid to bolster its Multi-Asset Multi-Asset Composed of varying asset classes, multi-asset is a blanket designation combining different classes such bonds, equities, cash equivalents, fixed income, and alternative investments.When compared to traditional balanced funds, multi-asset solutions differ because they target specific investment outcomes. This includes outcomes such as return above inflation as opposed to gauging performance against standardized benchmarks.Given the composition of multi-asset classes, they need to be dynamically Composed of varying asset classes, multi-asset is a blanket designation combining different classes such bonds, equities, cash equivalents, fixed income, and alternative investments.When compared to traditional balanced funds, multi-asset solutions differ because they target specific investment outcomes. This includes outcomes such as return above inflation as opposed to gauging performance against standardized benchmarks.Given the composition of multi-asset classes, they need to be dynamically capabilities, Markit last week acquired an interest in commodity markets research and price reporting PRIMA.
Commenting on the results, Lance Uggla, chairman and chief executive officer of Markit, said: "In the first quarter, Information produced solid operating results and we saw steady performance in Processing. Despite expected slower growth in Solutions this quarter, and challenging market conditions, our long term financial objectives for Markit’s businesses have not changed. We remain focused on helping our customers manage regulatory change and reduce costs while delivering strong results for our shareholders”.
Markit Ltd. (Nasdaq:MRKT), a provider of financial information services, has announced its financial metrics for Q1 2016. The group reported mainly solid operating results, including a rise in revenues, helping the company secure QoQ growth in spite of challenging market conditions.
Revenue
For Q1 2016, Markit saw its revenues increase by $16.3 million to $287.8 million, up 6 percent QoQ from $271.5 million in Q1 2015. Organic revenue growth was $2.7 million, or 1 percent from Q1 2015. This was driven by new business wins across the company’s solutions and information segments, partially offset by a decrease in its processing segment.
Operating Expenses
Operating expenses increased by $13.7 million, or 9.3 percent, to $160.5 million for Q1 2016, from $146.8 million for Q1 2015, mainly due to increases in personnel costs and acquisitions.
Adjusted EBITDA and Adjusted EBITDA Margin
Adjusted EBITDA of $123.7 million for Q1 2016 increased by $3.0 million, or 2.5 percent, from $120.7 million for Q1 2015. This increase reflects the operating performance described above. Adjusted EBITDA includes a $3.0 million loss in Q1 2016 associated with the company’s share of the KYC joint venture included in its solutions segment.
Adjusted EBITDA margin decreased to 43.3 percent for Q1 2016, compared to 44.8 percent for Q1 2015 mainly due to the reduced revenue in the processing segment and the dilutive impact of acquisitions completed in 2015.
Markit has been an active participant in the Acquisition Acquisition Acquisition means acquiring or taking possession or the securing of property, services, or abilities. To put it simply, it is the act or process of acquiring or gaining. You can acquire a work of art, you can acquire an ability such as speaking another language, you can acquire a business or shares in a company and you can acquire an accountant's service. For example, you can acquire a new car. In a broad sense, Acquisition can mean the act of taking ownership or possession of something. There Acquisition means acquiring or taking possession or the securing of property, services, or abilities. To put it simply, it is the act or process of acquiring or gaining. You can acquire a work of art, you can acquire an ability such as speaking another language, you can acquire a business or shares in a company and you can acquire an accountant's service. For example, you can acquire a new car. In a broad sense, Acquisition can mean the act of taking ownership or possession of something. There space over the past few months. In its latest bid to bolster its Multi-Asset Multi-Asset Composed of varying asset classes, multi-asset is a blanket designation combining different classes such bonds, equities, cash equivalents, fixed income, and alternative investments.When compared to traditional balanced funds, multi-asset solutions differ because they target specific investment outcomes. This includes outcomes such as return above inflation as opposed to gauging performance against standardized benchmarks.Given the composition of multi-asset classes, they need to be dynamically Composed of varying asset classes, multi-asset is a blanket designation combining different classes such bonds, equities, cash equivalents, fixed income, and alternative investments.When compared to traditional balanced funds, multi-asset solutions differ because they target specific investment outcomes. This includes outcomes such as return above inflation as opposed to gauging performance against standardized benchmarks.Given the composition of multi-asset classes, they need to be dynamically capabilities, Markit last week acquired an interest in commodity markets research and price reporting PRIMA.
Commenting on the results, Lance Uggla, chairman and chief executive officer of Markit, said: "In the first quarter, Information produced solid operating results and we saw steady performance in Processing. Despite expected slower growth in Solutions this quarter, and challenging market conditions, our long term financial objectives for Markit’s businesses have not changed. We remain focused on helping our customers manage regulatory change and reduce costs while delivering strong results for our shareholders”.