MSCI's fourth-quarter profit declines on higher expenses

(Reuters) - MSCI reported a 24.3% fall in fourth-quarter profit on Wednesday, hurt by higher costs and tougher comparisons to a year earlier, when the index provider had recorded a $143 million one-time gain.

WHY IT'S IMPORTANT

MSCI's results often reflect sentiment in the broader market, as clients use the company's stock indexes and other tools to help them evaluate their investments.

BY THE NUMBERS

Operating revenue rose 7.7% to $743.5 million. However, operating expenses increased 5.9% to $338.3 million.

The company also spent more on compensation and incentives for its employees, as it raised its headcount by 5.8% to 6,132 as of Dec. 31.

Comparisons to the prior year were challenging as MSCI had recognized a one-time gain tied to its investment in private asset data analytics firm Burgiss Group in the fourth quarter of 2023.

The data provider posted a profit of $305.5 million for the quarter ending Dec. 31, or $3.90 per share, compared with $403.4 million, or $5.07 per share, a year earlier.

MARKET REACTION

The company's shares fell 5.3% to $595.95 in premarket trading.

(Reporting by Ateev Bhandari in Bengaluru; Editing by Shailesh Kuber)

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