Interactive Data posts 57% Y/Y drop in net income in Q1 2015

Interactive Data Corporation, the provider of trading infrastructure and financial information services, has reported its financial metrics for the first three months of 2015, with the results highlighting challenges the group has faced in terms of restricting operating expenditure.

  • Net income for the three months to March 31, 2015, amounted to $6.54 million, a result that is massive 57% lower than the $15.09 million recorded in the same period in 2014.
  • Operating income equalled $35.96 million, down by 12.7% from the $41.2 million mark set in the final quarter of 2014 and down by 11.9% from the $40.8 million recorded in the first quarter of 2014.
  • Revenues were also down in annual and quarterly terms, with the decline, however, less pronounced than the one exhibited by the profits. In the first three months of 2015, Interactive Data saw revenues of $232.2 million, down by 0.9% against the result seen a year earlier and down by 2.05% from the result seen in the fourth quarter of 2014.

High expenditure was the main factor behind the income drop seen in the first quarter of 2015. Total operating expenses for the three-month period were $196.3 million, up by 1.4% over the equivalent period one year ago. The company also recorded a foreign exchange loss of $11.6 million in the first quarter of 2015.

Interactive Data notes, however, that the results were markedly better when the foreign exchange losses were excluded. Thus, stripping off the effects of changes in foreign exchange rates, Interactive Data’s organic (non-GAAP) revenue for the first quarter of 2015 was $239.2 million, up by 2% against the first quarter of 2014.

In fact, Stephen Daffron, Interactive Data’s President and CEO, was upbeat on the performance of the company in the first three months of 2015. He commented:

“Interactive Data’s first quarter results exceeded our expectations and we are well positioned to generate continued revenue and profit growth throughout 2015. Our first quarter organic revenue growth was mainly driven by continued growth in our Pricing and Reference Data segment of 4.5%, partially offset by lower revenues among our 7ticks trading infrastructure and customized hosted web applications businesses, both of which had large one-time and non-recurring revenue in the prior year period. We generated Adjusted EBITDA of $88.0 million during the quarter, a 7.2% increase over the first quarter of 2014, reflecting our continued commitment to cost containment and driving operating efficiencies.”

Interactive Data Q1 2015 Financial Metrics Highlights 

(numbers in thousand USD)


To view the official announcement of Interactive Data’s financial metrics, click here.

Read Also: