56-572019 Financial Highlights and Revenue Snapshots
The 2020 Investor Fact Book reflects:
Revenue from Kensho contract obligations in Market Intelligence’s results, starting in 1Q 2019: Beginning in the first quarter of 2019, the contract obligations for revenue from Kensho Technologies Inc.’s (“Kensho”) major customers were transferred from Corporate to Market Intelligence for fulfillment. In 2018, this revenue was reported in Corporate revenue. Effective January 1, 2019, revenue from these contracts is reflected in Market Intelligence’s results.
Technology-related expenses allocated to each reportable segment for 2018 and 2019: In the first quarter of 2020, the Company changed its methodology for allocating its centrally managed technology-related expenses to its reportable segments to more accurately reflect each segment’s respective usage. Results recast for 2018 and 2019; prior years not restated. As a result, percent increases/decreases from 2017 to 2018 are not calculated.
2019 Financial Highlights and Revenue Snapshots
Ratings(1) |
Market(1, 4)Intelligence |
Platts(5) |
Indices |
S&P Global |
|---|---|---|---|---|
| Revenue | ||||
| Increased by 8% to$3.11 billion | Increased by 7% to $1.96 billion | Increased by 4% to $844 million | Increased by 10% to $918 million | Increased by 7% to $6.70 billion |
| Organic Revenue | ||||
| Increased by 8% to$3.10 billion | Increased by 7% to $1.94 billion | Increased by 4% to $838 million | Increased by 10% to $918 million | Increased by 7% to $6.67 billion |
| Operating Profit | ||||
| Increased by 15% to $1.78 billion | Increased by 13% to $566 million | Increased by 14% to $457 million | Increased by 12% to $632 million(6) | Increased by 16% to $3.23 billion |
| Adjusted Operating Profit | ||||
| Increased by 10% to $1.80 billion(3) | Increased by 8% to $629 million | Increased by 6% to $443 million | Increased by 12% to $637 million(6) | Increased by 10% to $3.36 billion |
| Adjusted Operating Profit Margin | ||||
| Increased by 100 bps to 57.8%(3) | Increased by 40 bps to 32.1% | Increased by 100 bps to 52.4% | Increased by 120 bps to 69.5%(6) | Increased by 140 bps to 50.2% |
Revenue Snapshots U.S. GAAP
4
Segments with Revenue Growth
S&P Global’s revenue increased by 7% year-over-year. The increase was driven by revenue growth at all four of the Company’s reportable segments. Ratings revenue was up 8%, Market Intelligence revenue grew 7%, Platts revenue rose 4%, and Indices revenue increased by 10%.
See pages 58 to 62 for Division Revenue
60%
Revenue From Nonfinancial Corporates
In addition to financial institutions, S&P Global serves numerous industries, including utilities, technology, and integrated oil and gas as well as governments. Nonfinancial corporates in industrial categories represent almost 60% of S&P Global’s 2019 revenue.
See page 63 for Industry Sector Revenue
* Estimates based on a combination of revenue and annual contract value by sector
41%
Ex-U.S. Revenue
S&P Global has approximately
23,000 employees in 35 countries and nearly 70 global offices. 41%
of the Company’s revenues in 2019 came from international operations. U.S. revenue increased by 5% year-over-year while total Ex-U.S. revenue increased by 10%.
See pages 63 to 65 for Global Revenue
73%
Revenue Is Ongoing in Nature
73% of S&P Global’s 2019 revenue was tied to subscription revenue, non-transaction revenue, and asset-linked fees that are ongoing in nature. Asset-linked fee revenue increased by 15% year-over-year while subscription revenue increased by 6%.
Notes:
See Appendix (pages 73-78) for non-GAAP adjustments, deal-related amortization, and a reconciliation of adjusted information to U.S. GAAP