MSCI's revenue rose 12.2 percent, led by a 26.6 percent jump in asset-based fees

MSCI reported second-quarter operating revenues of $867.0 million, up 12.2 percent from a year earlier, in a Form 8-K exhibit released July 21. Growth came from both halves of the business. Recurring subscription revenues rose 9.0 percent, and asset-based fees, which move with the assets tracking MSCI indexes, climbed 26.6 percent.

Operating income was $487.5 million, up 14.6 percent, and the operating margin widened to 56.2 percent from 55.0 percent. Net income rose 12.6 percent to $342.0 million. Diluted EPS was $4.69, up 19.6 percent, while adjusted EPS, a measure the company reports separately, was $4.94, up 18.5 percent.

Total Run Rate, the annualized value of the recurring revenue MSCI expects from current subscriptions and fees, reached $3,479.7 million at June 30, up 12.0 percent, with record ETF assets under management linked to its indexes named as a driver. The retention rate was 95.3 percent, against 94.4 percent a year earlier.

The board declared a third-quarter dividend of $2.05 a share. During the quarter and through July 20 the company repurchased $147.2 million of stock, 264,043 shares at an average price of $557.66. Henry Fernandez, chairman and chief executive, said the company had its best quarter ever with hedge funds and its best second quarter with asset owners.