The McGraw-Hill Companies Reports 11.9% Growth in 2nd Quarter
"We stepped up our share repurchases in the second quarter of 2011, buying back 4.4 million shares for $177 million, and announced a new repurchase program for up to 50 million shares, or approximately 17% of the Corporation's outstanding shares."
McGraw-Hill Financial: Revenue for this segment, which was launched in 2011, grew by 13.5% to $333.4 million and operating profit increased by 17.3% to $97.8 million in the second quarter compared to the same period last year. Excluding the September 2010 acquisition of TheMarkets.com, revenue grew by 9.3%. Favorable foreign exchange rates increased revenue by $2.6 million.
Solid performances by newly established groups in the reorganized segment -- Integrated Desktop Solutions, Enterprise Solutions, and Benchmarks -- offset a decline at Research & Analytics.
For McGraw-Hill Financial, subscription and international revenue both grew at double-digit rates in the second quarter. Subscriptions produced $245.7 million, or 74% of McGraw-Hill Financial's revenue in the second quarter. International revenue of $102.6 million, or approximately 31% of the total segment, benefited from the continued enhancement of international databases and the successful integration of sales and marketing teams in overseas markets.
Integrated Desktop Solutions Group benefited from growth at Capital IQ, the Global Credit Portal, and the acquisition of TheMarkets.com. Capital IQ added new data sets, enhanced platform functionality and increased its customer base, ending the second quarter with more than 3,700 clients, a 16.5% year-over-year increase.
The Global Credit Portal, which includes Ratings Direct, also expanded its customer base, capitalizing on strong demand for S&P ratings information in international markets, particularly in Europe.
The Enterprise Solutions Group, which is integrating the delivery of McGraw-Hill Financial, S&P and third-party data and information for financial markets, is adding clients who are buying multiple services. Products such as Global Data Solutions and the Credit Health Panel, which draw on the range of segment information, are benefiting from the growing availability of broader and deeper content that helps clients manage investment and trading strategies.