News
S&P Second Quarter 2020 Global Revenue Reported at $1,943 Million
Published
4 years agoon
NEW YORK, July 28, 2020 — S&P Global (NYSE: SPGI) today reported second quarter 2020 results with revenue of $1,943 million, an increase of 14% compared to the same period last year. Net income increased 43% to $792 million and diluted earnings per share increased 46% to $3.28 primarily due to revenue growth in S&P Global Ratings and reduced expenses from COVID-19 related management actions.
Adjusted net income increased 37% to $822 million and adjusted diluted earnings per share increased 40% to $3.40 primarily due to revenue growth in S&P Global Ratings and reduced expenses across the Company from COVID-19 related management actions. The adjustments in the second quarter of 2020 were associated with restructurings in Corporate, a gain on a divestment, as well as deal-related amortization and Kensho retention-related expenses.
“Companies, particularly in the U.S., have turned to the bond market to raise liquidity during this COVID-19 pandemic while central banks have initiated bond purchase programs to support market liquidity. The need for our products has increased during these uncertain times and we are proud that our people and our organization have delivered the insights and essential intelligence that the market expects from us. In fact, all four of our divisions delivered solid growth during the quarter,” said Douglas L. Peterson, President and Chief Executive Officer of S&P Global. “These are unprecedented times and over 99% of our employees continue to work from home. I am proud of their efforts not only to ensure that all of our operations continue uninterrupted, but also to innovate with new product launches and advance our investment and productivity programs while supporting the markets and our customers with relevant and timely ratings, benchmarks, research, data and analytics.”
Profit Margin: The Company’s operating profit margin increased 920 basis points to 56.9% and the adjusted operating profit margin increased 740 basis points to 58.7% primarily due to revenue growth in S&P Global Ratings and reduced expenses due to management actions in response to COVID-19.
Return of Capital: No new share repurchases were made in the second quarter while our existing ASR program was in place. On July 27, this ASR program was completed. During the second quarter, the Company paid $162 million in dividends. During the first half of 2020, the Company has returned $1.47 billion to shareholders consisting of $1.15 billion in share repurchases and $323 million in dividends.
Ratings: Revenue increased 26% to $1,006 million in the second quarter primarily due to strong global investment-grade issuance, including record quarterly U.S. investment-grade issuance. Transaction revenue increased 48% to $624 million due primarily to an increase in global bond issuance partially offset by decreased bank loan rating activity. Non-transaction revenue increased 1% to $382 million.
Operating profit increased 51% to $693 million and the operating profit margin improved 1,150 basis points to 68.9% compared to the second quarter of 2019. Adjusted operating profit increased 47% to $695 million and the adjusted operating profit margin improved 1,020 basis points to 69.1%.
S&P Dow Jones Indices: S&P Dow Jones Indices LLC is a majority-owned subsidiary. The consolidated results are included in S&P Global’s income statement and the portion related to the 27% noncontrolling interest is removed in net income attributable to noncontrolling interests.
Revenue increased 2% to $240 million in the second quarter of 2020 due primarily to a 20% increase in exchange-traded derivative fees and a 6% gain in data and custom subscriptions.
Asset-linked fees include fees associated with ETFs, mutual funds, and certain over-the-counter derivatives. Revenue from ETFs is the largest component of asset-linked fees, and average ETF AUM associated with the Company’s indices increased 2% year-over-year. However, quarter-ending ETF AUM associated with our indices was $1,616 billion, a 6% increase from 2Q 2019.
Operating profit increased 5% to $171 million and the operating profit margin increased 220 basis points to 71.4%. Adjusted operating profit increased 5% to $172 million and the adjusted operating profit margin improved 210 basis points to 71.9%. Operating profit attributable to the Company increased 5% to $125 million. Adjusted operating profit attributable to the Company increased 5% to $126 million.
Market Intelligence: Revenue increased 6% to $516 million in the second quarter of 2020 with growth in Data Management Solutions, Credit Risk Solutions, and Desktop as well as the addition of 451 Research. Quarterly operating profit increased 16% to $159 million and the operating profit margin improved 280 basis points to 30.8% as increased revenue outpaced modestly higher expenses. Adjusted operating profit increased 13% to $177 million and adjusted operating profit margin improved 220 basis points to 34.4%.
Platts: Revenue increased 2% to $217 million with growth in both the core subscription business and Global Trading Services. Quarterly operating profit increased 12% to $124 million and the operating profit margin increased 500 basis points to 57.3% due to revenue growth and lower expenses. Adjusted operating profit increased 9% to $127 million and adjusted operating profit margin increased 400 basis points to 58.3%.
Corporate Unallocated Expense: This expense decreased from $58 million in the prior period to $42 million in the second quarter of 2020 due primarily to a reduction in restructuring expenses versus the prior period. Adjusted Corporate Unallocated expense declined from $35 million in the prior period to $30 million due primarily to lower rental expense from a reduction in the Company’s real estate footprint and lower professional fees, partially offset by a contribution to the S&P Global Foundation made in 2020.
Provision for Income Taxes: The Company’s effective tax rate decreased to 21.7% in the second quarter of 2020 compared to 23.0% in the same period last year and the Company’s adjusted effective tax rate decreased to 21.7% in the second quarter of 2020 compared to 23.1% in the same period last year. Both declines were due primarily to the successful resolution of tax examinations in various jurisdictions.
Balance Sheet and Cash Flow: Cash, cash equivalents, and restricted cash at the end of the second quarter were $2.7 billion. In the first six months of 2020, cash provided by operating activities was $1,617 million, cash used for investing activities was $186 million, and cash used for financing activities was $1,610 million. Free cash flow in the first six months of 2020 was $1,507 million, an increase of $602 million from the same period in 2019, primarily due to an increase in net income and the timing of U.S. federal estimated tax payments.
Outlook: Due to the uncertainties associated with COVID-19, S&P Global has analyzed several scenarios that are contingent on the depth and duration of the COVID-19 pandemic and its resulting impact on economic and market-specific drivers that may impact the Company’s businesses. This quarter, S&P Global has disclosed two specific scenarios as part of its second quarter 2020 earnings materials, with the “late 3Q recovery” being the baseline scenario at this point in time and the basis for the following revised guidance. GAAP diluted EPS guidance is increased from a range of $9.50 to $9.70 to a new range of $10.25 to $10.45. Adjusted diluted EPS guidance is increased from a range of $9.95 to $10.15 to a new range of $10.75 to $10.95. Additional details for these scenarios are presented on slides 43-47 of the second quarter 2020 earnings materials which are available at http://investor.spglobal.com/Quarterly-Earnings.
Comparison of Adjusted Information to U.S. GAAP Information: The Company reports its financial results in accordance with accounting principles generally accepted in the United States (“GAAP”). The Company also refers to and presents certain additional non-GAAP financial measures, within the meaning of Regulation G under the Securities Exchange Act of 1934. These measures are: adjusted diluted earnings per share, adjusted net income, adjusted operating profit and margin, organic revenue, adjusted Corporate Unallocated expense, adjusted effective tax rates, adjusted diluted EPS guidance, free cash flow, and free cash flow excluding certain items. The Company has included reconciliations of these non-GAAP financial measures to the most directly comparable financial measures calculated in accordance with GAAP on Exhibits 5, 7 and 8. Reconciliations of certain forward-looking non-GAAP financial measures to comparable GAAP measures are not available due to the challenges and impracticability with estimating some of the items. The Company is not able to provide reconciliations of such forward-looking non-GAAP financial measures because certain items required for such reconciliations are outside of the Company’s control and/or cannot be reasonably predicted. Because of those challenges, reconciliations of such forward-looking non-GAAP financial measures are not available without unreasonable effort.
The Company’s non-GAAP measures include adjustments that reflect how management views our businesses. The Company believes these non-GAAP financial measures provide useful supplemental information that, in the case of non-GAAP financial measures other than free cash flow and free cash flow excluding certain items, enables investors to better compare the Company’s performance across periods, and management also uses these measures internally to assess the operating performance of its business, to assess performance for employee compensation purposes and to decide how to allocate resources. The Company believes that the presentation of free cash flow and free cash flow excluding certain items allows investors to evaluate the cash generated from our underlying operations in a manner similar to the method used by management and that such measures are useful in evaluating the cash available to us to prepay debt, make strategic acquisitions and investments, and repurchase stock. However, investors should not consider any of these non-GAAP measures in isolation from, or as a substitute for, the financial information that the Company reports.
Conference Call/Webcast Details: The Company’s senior management will review the second quarter 2020 earnings results on a conference call scheduled for today, July 28, at 8:30 a.m. EDT. Additional information presented on the conference call may be made available on the Company’s Investor Relations Website at http://investor.spglobal.com.
The Webcast will be available live and in replay at http://investor.spglobal.com/Quarterly-Earnings. (Please copy and paste URL into Web browser.)
Telephone access is available. U.S. participants may call (888) 603-9623; international participants may call +1 (630) 395-0220 (long-distance charges will apply). The passcode is “S&P Global” and the conference leader is Douglas Peterson. A recorded telephone replay will be available approximately two hours after the meeting concludes and will remain available until October 28, 2020. U.S. participants may call (888) 566-0398; international participants may call +1 (402) 998-0588 (long-distance charges will apply). No passcode is required.
Forward-Looking Statements: This press release contains “forward-looking statements,” as defined in the Private Securities Litigation Reform Act of 1995. These statements, including statements about COVID-19 and the scenarios we are using to project the impact of the pandemic on the Company, which express management’s current views concerning future events, trends, contingencies or results, appear at various places in this report and use words like “anticipate,” “assume,” “believe,” “continue,” “estimate,” “expect,” “forecast,” “future,” “intend,” “plan,” “potential,” “predict,” “project,” “strategy,” “target” and similar terms, and future or conditional tense verbs like “could,” “may,” “might,” “should,” “will” and “would.” For example, management may use forward-looking statements when addressing topics such as: the outcome of contingencies; future actions by regulators; changes in the Company’s business strategies and methods of generating revenue; the development and performance of the Company’s services and products; the expected impact of acquisitions and dispositions; the Company’s effective tax rates; and the Company’s cost structure, dividend policy, cash flows or liquidity.
Forward-looking statements are subject to inherent risks and uncertainties. Factors that could cause actual results to differ materially from those expressed or implied in forward-looking statements include, among other things:
- worldwide economic, financial, political and regulatory conditions, and factors that contribute to uncertainty and volatility including natural and man-made disasters, civil unrest, pandemics (e.g., COVID-19), geopolitical uncertainty, and conditions that may result from legislative, regulatory, trade and policy changes associated with the current U.S. administration;
- the Company’s ability to successfully recover should it experience a disaster or other business continuity problem from a hurricane, flood, earthquake, terrorist attack, pandemic, security breach, cyber attack, power loss, telecommunications failure or other natural or man-made event, including the ability to function remotely during long-term disruptions such as the COVID-19 pandemic;
- the Company’s ability to maintain adequate physical, technical and administrative safeguards to protect the security of confidential information and data, and the potential for a system or network disruption that results in regulatory penalties and remedial costs or improper disclosure of confidential information or data;
- the outcome of litigation, government and regulatory proceedings, investigations and inquiries;
- the health of debt and equity markets, including credit quality and spreads, the level of liquidity and future debt issuances, demand for investment products that track indices and assessments, and trading volumes of certain exchange-traded derivatives;
- the demand and market for credit ratings in and across the sectors and geographies where the Company operates;
- concerns in the marketplace affecting the Company’s credibility or otherwise affecting market perceptions of the integrity or utility of independent credit ratings, benchmarks, and indices;
- the effect of competitive products and pricing, including the level of success of new product developments and global expansion;
- the Company’s exposure to potential criminal sanctions or civil penalties for noncompliance with foreign and U.S. laws and regulations that are applicable in the domestic and international jurisdictions in which it operates, including sanctions laws relating to countries such as Iran, Russia, Sudan, Syria and Venezuela, anti-corruption laws such as the U.S. Foreign Corrupt Practices Act and the U.K. Bribery Act of 2010, and local laws prohibiting corrupt payments to government officials, as well as import and export restrictions;
- the continuously evolving regulatory environment, in Europe, the United States and elsewhere, affecting S&P Global Ratings, S&P Global Platts, S&P Dow Jones Indices, and S&P Global Market Intelligence, including the Company’s compliance therewith;
- the Company’s ability to make acquisitions and dispositions and successfully integrate the businesses we acquire;
- consolidation in the Company’s end-customer markets;
- the introduction of competing products or technologies by other companies;
- the impact of customer cost-cutting pressures, including in the financial services industry and the commodities markets;
- a decline in the demand for credit risk management tools by financial institutions;
- the level of merger and acquisition activity in the United States and abroad;
- the volatility and the health of the energy and commodities markets;
- our ability to attract, incentivize, and retain key employees;
- the level of the Company’s future cash flows and capital investments;
- the impact on the Company’s revenue and net income caused by fluctuations in foreign currency exchange rates;
- the Company’s ability to adjust to changes in European and United Kingdom markets as the United Kingdom leaves the European Union, and the impact of the United Kingdom’s departure on our credit rating activities and other offerings in the European Union and United Kingdom; and
- the impact of changes in applicable tax or accounting requirements, including the Tax Cuts and Jobs Act on the Company.
The factors noted above are not exhaustive. The Company and its subsidiaries operate in a dynamic business environment in which new risks emerge frequently. Accordingly, the Company cautions readers not to place undue reliance on any forward-looking statements, which speak only as of the dates on which they are made. The Company undertakes no obligation to update or revise any forward-looking statement to reflect events or circumstances arising after the date on which it is made, except as required by applicable law. Further information about the Company’s businesses, including information about factors that could materially affect its results of operations and financial condition, is contained in the Company’s filings with the SEC, including Item 1A, Risk Factors, in our most recently filed Annual Report on Form 10-K and Item 1A, Risk Factors in our most recently filed Form 10-Q.
Exhibit 1 |
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S&P Global |
||||||||||||||||||||||
Condensed Consolidated Statements of Income |
||||||||||||||||||||||
Three and six months ended June 30, 2020 and 2019 |
||||||||||||||||||||||
(dollars in millions, except per share data) |
||||||||||||||||||||||
(unaudited) |
Three Months |
Six Months |
||||||||||||||||||||
2020 |
2019 |
% Change |
2020 |
2019 |
% Change |
|||||||||||||||||
Revenue |
$ |
1,943 |
$ |
1,704 |
14% |
$ |
3,729 |
$ |
3,275 |
14% |
||||||||||||
Expenses |
839 |
891 |
(6)% |
1,720 |
1,757 |
(2)% |
||||||||||||||||
Gain on disposition |
(1) |
— |
N/M |
(8) |
— |
N/M |
||||||||||||||||
Operating profit |
1,105 |
813 |
36% |
2,017 |
1,518 |
33% |
||||||||||||||||
Other (income) expense, net |
(10) |
(6) |
(61)% |
(9) |
97 |
N/M |
||||||||||||||||
Interest expense, net |
40 |
37 |
8% |
74 |
73 |
1% |
||||||||||||||||
Income before taxes on income |
1,075 |
782 |
38% |
1,952 |
1,348 |
45% |
||||||||||||||||
Provision for taxes on income |
233 |
180 |
29% |
421 |
293 |
44% |
||||||||||||||||
Net income |
842 |
602 |
40% |
1,531 |
1,055 |
45% |
||||||||||||||||
Less: net income attributable to noncontrolling interests |
(50) |
(47) |
(6)% |
(100) |
(90) |
(11)% |
||||||||||||||||
Net income attributable to S&P Global Inc. |
$ |
792 |
$ |
555 |
43% |
$ |
1,431 |
$ |
965 |
48% |
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Earnings per share attributable to S&P Global Inc. common shareholders: |
||||||||||||||||||||||
Net income: |
||||||||||||||||||||||
Basic |
$ |
3.29 |
$ |
2.25 |
46% |
$ |
5.92 |
$ |
3.92 |
51% |
||||||||||||
Diluted |
$ |
3.28 |
$ |
2.24 |
46% |
$ |
5.90 |
$ |
3.89 |
51% |
||||||||||||
Weighted-average number of common shares outstanding: |
||||||||||||||||||||||
Basic |
240.9 |
246.1 |
241.5 |
246.4 |
||||||||||||||||||
Diluted |
241.9 |
247.4 |
242.6 |
247.9 |
||||||||||||||||||
Actual shares outstanding at period end |
241.0 |
246.3 |
||||||||||||||||||||
N/M – not meaningful |
|
Note – % change in the tables throughout the exhibits are calculated off of the actual number, not the rounded number presented. |
Exhibit 2 |
||||||||||
S&P Global |
||||||||||
Condensed Consolidated Balance Sheets |
||||||||||
June 30, 2020 and December 31, 2019 |
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(dollars in millions) |
||||||||||
(unaudited) |
June 30, |
December 31, |
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2020 |
2019 |
|||||||||
Assets: |
||||||||||
Cash, cash equivalents, and restricted cash |
$ |
2,684 |
$ |
2,886 |
||||||
Other current assets |
1,775 |
1,826 |
||||||||
Total current assets |
4,459 |
4,712 |
||||||||
Property and equipment, net |
299 |
320 |
||||||||
Right of use assets |
626 |
676 |
||||||||
Goodwill and other intangible assets, net |
5,107 |
4,999 |
||||||||
Other non-current assets |
614 |
641 |
||||||||
Total assets |
$ |
11,105 |
$ |
11,348 |
||||||
Liabilities and Equity: |
||||||||||
Unearned revenue |
1,850 |
1,928 |
||||||||
Other current liabilities |
1,190 |
1,165 |
||||||||
Long-term debt |
3,950 |
3,948 |
||||||||
Lease liabilities — non-current |
578 |
620 |
||||||||
Pension, other postretirement benefits and other non-current liabilities |
866 |
883 |
||||||||
Total liabilities |
8,434 |
8,544 |
||||||||
Redeemable noncontrolling interest |
2,403 |
2,268 |
||||||||
Total equity |
268 |
536 |
||||||||
Total liabilities and equity |
$ |
11,105 |
$ |
11,348 |
||||||
Exhibit 3 |
||||||||||
S&P Global |
||||||||||
Condensed Consolidated Statements of Cash Flows |
||||||||||
Six months ended June 30, 2020 and 2019 |
||||||||||
(dollars in millions) |
||||||||||
(unaudited) |
2020 |
2019 |
||||||||
Operating Activities: |
||||||||||
Net income |
$ |
1,531 |
$ |
1,055 |
||||||
Adjustments to reconcile net income to cash provided by operating activities: |
||||||||||
Depreciation |
39 |
41 |
||||||||
Amortization of intangibles |
61 |
63 |
||||||||
Deferred income taxes |
3 |
30 |
||||||||
Stock-based compensation |
22 |
33 |
||||||||
Gain on disposition |
(8) |
— |
||||||||
Pension settlement charges, net of taxes |
2 |
85 |
||||||||
Other |
41 |
50 |
||||||||
Net changes in other operating assets and liabilities |
(74) |
(347) |
||||||||
Cash provided by operating activities |
1,617 |
1,010 |
||||||||
Investing Activities: |
||||||||||
Capital expenditures |
(18) |
(46) |
||||||||
Acquisitions, net of cash acquired |
(185) |
(4) |
||||||||
Changes in short-term investments and other |
17 |
(3) |
||||||||
Cash used for investing activities |
(186) |
(53) |
||||||||
Financing Activities: |
||||||||||
Dividends paid to shareholders |
(323) |
(281) |
||||||||
Distributions to noncontrolling interest holders, net |
(92) |
(59) |
||||||||
Repurchase of treasury shares |
(1,153) |
(644) |
||||||||
Exercise of stock options and employee withholding tax on share-based payments, and other |
(42) |
(24) |
||||||||
Cash used for financing activities |
(1,610) |
(1,008) |
||||||||
Effect of exchange rate changes on cash |
(23) |
13 |
||||||||
Net change in cash, cash equivalents, and restricted cash |
(202) |
(38) |
||||||||
Cash, cash equivalents, and restricted cash at beginning of period |
2,886 |
1,958 |
||||||||
Cash, cash equivalents, and restricted cash at end of period |
$ |
2,684 |
$ |
1,920 |
||||||
Exhibit 4 |
||||||||||||||||||||||
S&P Global |
||||||||||||||||||||||
Operating Results by Segment |
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Three and six months ended June 30, 2020 and 2019 |
||||||||||||||||||||||
(dollars in millions) |
||||||||||||||||||||||
(unaudited) |
Three Months |
Six Months |
||||||||||||||||||||
Revenue |
Revenue |
|||||||||||||||||||||
2020 |
2019 |
% Change |
2020 |
2019 |
% Change |
|||||||||||||||||
Ratings |
$ |
1,006 |
$ |
801 |
26% |
$ |
1,831 |
$ |
1,497 |
22% |
||||||||||||
Market Intelligence |
516 |
487 |
6% |
1,034 |
969 |
7% |
||||||||||||||||
Platts |
217 |
213 |
2% |
433 |
420 |
3% |
||||||||||||||||
Indices |
240 |
235 |
2% |
499 |
452 |
10% |
||||||||||||||||
Intersegment Elimination |
(36) |
(32) |
(11)% |
(68) |
(63) |
(8)% |
||||||||||||||||
Total revenue |
$ |
1,943 |
$ |
1,704 |
14% |
$ |
3,729 |
$ |
3,275 |
14% |
||||||||||||
Expenses |
Expenses |
|||||||||||||||||||||
2020 |
2019 |
% Change |
2020 |
2019 |
% Change |
|||||||||||||||||
Ratings (a) |
$ |
313 |
$ |
341 |
(8)% |
$ |
618 |
$ |
669 |
(8)% |
||||||||||||
Market Intelligence (b) |
357 |
350 |
2% |
728 |
698 |
4% |
||||||||||||||||
Platts (c) |
93 |
102 |
(9)% |
197 |
209 |
(6)% |
||||||||||||||||
Indices (d) |
69 |
72 |
(5)% |
146 |
140 |
5% |
||||||||||||||||
Corporate Unallocated expense (e) |
42 |
58 |
(28)% |
91 |
104 |
(13)% |
||||||||||||||||
Intersegment Elimination |
(36) |
(32) |
(11)% |
(68) |
(63) |
(8)% |
||||||||||||||||
Total expenses |
$ |
838 |
$ |
891 |
(6)% |
$ |
1,712 |
$ |
1,757 |
(3)% |
||||||||||||
Operating Profit |
Operating Profit |
|||||||||||||||||||||
2020 |
2019 |
% Change |
2020 |
2019 |
% Change |
|||||||||||||||||
Ratings (a) |
$ |
693 |
$ |
460 |
51% |
$ |
1,213 |
$ |
828 |
47% |
||||||||||||
Market Intelligence (b) |
159 |
137 |
16% |
306 |
271 |
13% |
||||||||||||||||
Platts (c) |
124 |
111 |
12% |
236 |
211 |
12% |
||||||||||||||||
Indices (d) |
171 |
163 |
5% |
353 |
312 |
13% |
||||||||||||||||
Total reportable segments |
1,147 |
871 |
32% |
2,108 |
1,622 |
30% |
||||||||||||||||
Corporate Unallocated expense (e) |
(42) |
(58) |
28% |
(91) |
(104) |
13% |
||||||||||||||||
Total operating profit |
$ |
1,105 |
$ |
813 |
36% |
$ |
2,017 |
$ |
1,518 |
33% |
||||||||||||
(a) |
The three and six months ended June 30, 2019 includes employee severance charges of $11 million. Additionally, amortization of intangibles from acquisitions of $2 million is included for the three and six months ended June 30, 2020, and $1 million for the three and six months ended June 30, 2019. |
(b) |
The three and six months ended June 30, 2020 includes a gain on disposition of $1 million and $8 million, respectively, and the six months ended June 30, 2020 includes employee severance charges of $2 million. The three and six months ended June 30, 2019 includes employee severance charges of $1 million. Additionally, amortization of intangibles from acquisitions of $20 million and $19 million is included for the three months ended June 30, 2020 and 2019, respectively, and $39 million and $37 million for the six months ended June 30, 2020 and 2019, respectively. |
(c) |
The three and six months ended June 30, 2019 includes employee severance charge of $1 million. Additionally, amortization of intangibles from acquisitions of $2 million and $3 million is included for the three months ended June 30, 2020 and 2019, respectively, and $4 million and $7 million for the six months ended June 30, 2020 and 2019, respectively. |
(d) |
Amortization of intangibles from acquisitions of $1 million is included for the three months ended June 30, 2020 and 2019 and $3 million for the six months ended June 30, 2020 and 2019. |
(e) |
The three and six months ended June 30, 2020 includes employee severance charges of $3 million and $10 million, respectively, and Kensho retention related expense of $2 million and $7 million, respectively. The three and six months ended June 30, 2019 includes Kensho retention related expense of $5 million and $11 million, respectively, employee severance charges of $7 million, and a lease impairment of $5 million. Additionally, amortization of intangibles from acquisitions of $7 million and $13 million is included for the three and six months ended June 30, 2020, respectively, and $7 million and $14 million for the three and six months ended June 30, 2019, respectively. |
Exhibit 5 |
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S&P Global |
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Operating Results – Reported vs. Adjusted |
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Non-GAAP Financial Information |
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Three and six months ended June 30, 2020 and 2019 |
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(dollars in millions, except per share amounts)
|
|||||||||||||||||||||||
Adjusted Operating Profit |
|||||||||||||||||||||||
(unaudited) |
Three Months |
Six Months |
|||||||||||||||||||||
2020 |
2019 |
% Change |
2020 |
2019 |
% Change |
||||||||||||||||||
Ratings |
Operating profit |
$ |
693 |
$ |
460 |
51% |
$ |
1,213 |
$ |
828 |
47% |
||||||||||||
Non-GAAP Adjustments (a) |
— |
11 |
— |
11 |
|||||||||||||||||||
Deal-related amortization |
2 |
1 |
2 |
1 |
|||||||||||||||||||
Adjusted operating profit |
$ |
695 |
$ |
472 |
47% |
$ |
1,216 |
$ |
841 |
45% |
|||||||||||||
Market Intelligence |
Operating profit |
$ |
159 |
$ |
137 |
16% |
$ |
306 |
$ |
271 |
13% |
||||||||||||
Non-GAAP Adjustments (b) |
(1) |
1 |
(7) |
1 |
|||||||||||||||||||
Deal-related amortization |
20 |
19 |
39 |
37 |
|||||||||||||||||||
Adjusted operating profit |
$ |
177 |
$ |
157 |
13% |
$ |
338 |
$ |
310 |
9% |
|||||||||||||
Platts |
Operating profit |
$ |
124 |
$ |
111 |
12% |
$ |
236 |
$ |
211 |
12% |
||||||||||||
Non-GAAP Adjustments (c) |
— |
1 |
— |
1 |
|||||||||||||||||||
Deal-related amortization |
2 |
3 |
4 |
7 |
|||||||||||||||||||
Adjusted operating profit |
$ |
127 |
$ |
116 |
9% |
$ |
241 |
$ |
218 |
10% |
|||||||||||||
Indices |
Operating profit |
$ |
171 |
$ |
163 |
5% |
$ |
353 |
$ |
312 |
13% |
||||||||||||
Deal-related amortization |
1 |
1 |
3 |
3 |
|||||||||||||||||||
Adjusted operating profit |
$ |
172 |
$ |
164 |
5% |
$ |
355 |
$ |
315 |
13% |
|||||||||||||
Total segments |
Operating profit |
$ |
1,147 |
$ |
871 |
32% |
$ |
2,108 |
$ |
1,622 |
30% |
||||||||||||
Non-GAAP Adjustments (a) (b) (c) |
(1) |
14 |
(7) |
14 |
|||||||||||||||||||
Deal-related amortization |
26 |
24 |
48 |
48 |
|||||||||||||||||||
Adjusted segment operating profit |
$ |
1,171 |
$ |
909 |
29% |
$ |
2,149 |
$ |
1,683 |
28% |
|||||||||||||
Corporate Unallocated expense |
Corporate Unallocated expense |
$ |
(42) |
$ |
(58) |
(28)% |
$ |
(91) |
$ |
(104) |
(13)% |
||||||||||||
Non-GAAP adjustments (d) |
5 |
16 |
17 |
23 |
|||||||||||||||||||
Deal-related amortization |
7 |
7 |
13 |
14 |
|||||||||||||||||||
Adjusted Corporate Unallocated expense |
$ |
(30) |
$ |
(35) |
(14)% |
$ |
(60) |
$ |
(67) |
(10)% |
|||||||||||||
Total SPGI |
Operating profit |
$ |
1,105 |
$ |
813 |
36% |
$ |
2,017 |
$ |
1,518 |
33% |
||||||||||||
Non-GAAP adjustments (a) (b) (c) (d) |
4 |
30 |
11 |
37 |
|||||||||||||||||||
Deal-related amortization |
32 |
31 |
61 |
63 |
|||||||||||||||||||
Adjusted operating profit |
$ |
1,141 |
$ |
874 |
31% |
$ |
2,089 |
$ |
1,617 |
29% |
|||||||||||||
Adjusted Other (Income) Expense, Net |
||||||||||||||||||||||
(unaudited) |
Three Months |
Six Months |
||||||||||||||||||||
2020 |
2019 |
% Change |
2020 |
2019 |
% Change |
|||||||||||||||||
Other (income) expense, net |
$ |
(10) |
$ |
(6) |
(61)% |
$ |
(9) |
$ |
97 |
N/M |
||||||||||||
Non-GAAP Adjustments (e) |
(3) |
— |
(3) |
(113) |
||||||||||||||||||
Adjusted other income, net |
$ |
(13) |
$ |
(6) |
N/M |
$ |
(12) |
$ |
(16) |
23% |
||||||||||||
Adjusted Provision for Income Taxes |
||||||||||||||||||||||
(unaudited) |
Three Months |
Six Months |
||||||||||||||||||||
2020 |
2019 |
% Change |
2020 |
2019 |
% Change |
|||||||||||||||||
Provision for income taxes |
$ |
233 |
$ |
180 |
29% |
$ |
421 |
$ |
293 |
44% |
||||||||||||
Non-GAAP adjustments (a) (b) (c) (d) (e) |
1 |
7 |
4 |
37 |
||||||||||||||||||
Deal-related amortization |
7 |
7 |
14 |
15 |
||||||||||||||||||
Adjusted provision for income taxes |
$ |
242 |
$ |
195 |
24% |
$ |
440 |
$ |
345 |
28% |
||||||||||||
Adjusted Effective Tax Rate |
||||||||||||||||||||||
(unaudited) |
Three Months |
Six Months |
||||||||||||||||||||
2020 |
2019 |
% Change |
2020 |
2019 |
% Change |
|||||||||||||||||
Adjusted operating profit |
$ |
1,141 |
$ |
874 |
31% |
$ |
2,089 |
$ |
1,617 |
29% |
||||||||||||
Adjusted other income, net |
(13) |
(6) |
(12) |
(16) |
||||||||||||||||||
Interest expense, net |
40 |
37 |
74 |
73 |
||||||||||||||||||
Adjusted income before taxes on income |
$ |
1,114 |
$ |
843 |
32% |
$ |
2,027 |
$ |
1,560 |
30% |
||||||||||||
Adjusted provision for income taxes |
$ |
242 |
$ |
195 |
$ |
440 |
$ |
345 |
||||||||||||||
Adjusted effective tax rate 1 |
21.7 |
% |
23.1 |
% |
21.7 |
% |
22.1 |
% |
||||||||||||||
1 The adjusted effective tax rate is calculated by dividing the adjusted provision for income taxes by the adjusted income before taxes on income. |
Adjusted Net Income attributable to SPGI and Adjusted Diluted EPS |
|||||||||||||||||||||||
(unaudited) |
2020 |
2019 |
% Change |
||||||||||||||||||||
Net Income attributable to SPGI |
Diluted EPS |
Net Income attributable to SPGI |
Diluted EPS |
Net Income attributable to SPGI |
Diluted EPS |
||||||||||||||||||
Three Months |
|||||||||||||||||||||||
As reported |
$ |
792 |
$ |
3.28 |
$ |
555 |
$ |
2.24 |
43% |
46% |
|||||||||||||
Non-GAAP adjustments (a) (b) (c) (d) (e) |
5 |
0.02 |
23 |
0.09 |
|||||||||||||||||||
Deal-related amortization |
25 |
0.10 |
23 |
0.09 |
|||||||||||||||||||
Adjusted |
$ |
822 |
$ |
3.40 |
$ |
601 |
$ |
2.43 |
37% |
40% |
|||||||||||||
Six Months |
|||||||||||||||||||||||
As Reported |
$ |
1,431 |
$ |
5.90 |
$ |
965 |
$ |
3.89 |
48% |
51% |
|||||||||||||
Non-GAAP adjustments (a) (b) (c) (d) (e) |
9 |
0.04 |
113 |
0.45 |
|||||||||||||||||||
Deal-Related Amortization |
47 |
0.19 |
47 |
0.19 |
|||||||||||||||||||
Adjusted |
$ |
1,487 |
$ |
6.13 |
$ |
1,125 |
$ |
4.54 |
32% |
35% |
|||||||||||||
N/M – not meaningful |
|
Note – Totals presented may not sum due to rounding. |
|
Note – Adjusted operating margin for Ratings, Market Intelligence, Platts and Indices was 69%, 34%, 58% and 72% for the three months ended June 30, 2020. Adjusted operating margin for the Company was 59% for the three months ended June 30, 2020. Adjusted operating margin for Ratings, Market Intelligence, Platts and Indices was 66%, 33%, 56% and 71% for the six months ended June 30, 2020. Adjusted operating margin for the Company was 56% for the six months ended June 30, 2020. |
|
(a) |
The three and six months ended June 30, 2019 includes employee severance charges of $11 million ($9 million after-tax). |
(b) |
The three and six months ended June 30, 2020 includes a gain on disposition of $1 million ($1 million after-tax) and $8 million ($8 million after-tax), respectively, and the six months ended June 30, 2020 includes employee severance charges of $2 million ($2 million after-tax). The three and six months ended June 30, 2019 includes employee severance charges of $1 million ($1 million after-tax). |
(c) |
The three and six months ended June 30, 2019 includes employee severance charge of $1 million ($1 million after-tax). |
(d) |
The three and six months ended June 30, 2020 includes employee severance charges of $3 million ($2 million after-tax) and $10 million ($8 million after-tax), respectively, and Kensho retention related expense of $2 million ($2 million after-tax) and $7 million ($5 million after-tax), respectively. The three and six months ended June 30, 2019 includes Kensho retention related expense of $5 million ($4 million after-tax) and $11 million ($9 million after-tax), respectively, employee severance charges of $7 million ($5 million after-tax), and a lease impairment of $5 million ($4 million after-tax). |
(e) |
The three and six months ended June 30, 2020 includes a pension related charge of $3 million ($2 million after-tax). The six months ended June 30, 2019 includes a pension related charge of $113 million ($85 million after-tax). |
Exhibit 6 |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||
S&P Global |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue Information |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Three and six months ended June 30, 2020 and 2019 |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(dollars in millions) |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue by Type |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(unaudited) |
Ratings |
Market Intelligence |
Platts |
Indices |
Intersegment Elimination |
|||||||||||||||||||||||||||||||||||||||||||||||||||
2020 |
2019 |
% Change |
2020 |
2019 |
% Change |
2020 |
2019 |
% Change |
2020 |
2019 |
% Change |
2020 |
2019 |
% Change |
||||||||||||||||||||||||||||||||||||||||||
Three Months |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Non-Subscription / Transaction (a) |
624 |
422 |
48% |
13 |
12 |
12% |
1 |
3 |
(66)% |
— |
— |
N/M |
— |
— |
N/M |
|||||||||||||||||||||||||||||||||||||||||
Non-Transaction (b) |
382 |
379 |
1% |
— |
— |
N/M |
— |
— |
N/M |
— |
— |
N/M |
(36) |
(32) |
(11)% |
|||||||||||||||||||||||||||||||||||||||||
Subscription (c) |
— |
— |
N/M |
503 |
471 |
7% |
201 |
195 |
3% |
43 |
40 |
6% |
— |
— |
N/M |
|||||||||||||||||||||||||||||||||||||||||
Asset-Linked Fees (d) |
— |
— |
N/M |
— |
4 |
(97)% |
— |
— |
N/M |
153 |
159 |
(4)% |
— |
— |
N/M |
|||||||||||||||||||||||||||||||||||||||||
Sales Usage-Based Royalties (e) |
— |
— |
N/M |
— |
— |
N/M |
15 |
15 |
5% |
44 |
36 |
20% |
— |
— |
N/M |
|||||||||||||||||||||||||||||||||||||||||
Total revenue |
$ |
1,006 |
$ |
801 |
26% |
$ |
516 |
$ |
487 |
6% |
$ |
217 |
$ |
213 |
2% |
$ |
240 |
$ |
235 |
2% |
$ |
(36) |
$ |
(32) |
(11)% |
|||||||||||||||||||||||||||||||
Six Months |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Non-Subscription / Transaction (a) |
1,056 |
746 |
42% |
26 |
21 |
25% |
3 |
5 |
(40)% |
— |
— |
N/M |
— |
— |
N/M |
|||||||||||||||||||||||||||||||||||||||||
Non-Transaction (b) |
775 |
751 |
3% |
— |
— |
N/M |
— |
— |
N/M |
— |
— |
N/M |
(68) |
(63) |
(8)% |
|||||||||||||||||||||||||||||||||||||||||
Subscription (c) |
— |
— |
N/M |
1,007 |
939 |
7% |
398 |
386 |
3% |
89 |
80 |
11% |
— |
— |
N/M |
|||||||||||||||||||||||||||||||||||||||||
Asset-Linked Fees (d) |
— |
— |
N/M |
1 |
9 |
(92)% |
— |
— |
N/M |
312 |
302 |
4% |
— |
— |
N/M |
|||||||||||||||||||||||||||||||||||||||||
Sales Usage-Based Royalties (e) |
— |
— |
N/M |
— |
— |
N/M |
32 |
29 |
12% |
98 |
70 |
39% |
— |
— |
N/M |
|||||||||||||||||||||||||||||||||||||||||
Total revenue |
$ |
1,831 |
$ |
1,497 |
22% |
$ |
1,034 |
$ |
969 |
7% |
$ |
433 |
$ |
420 |
3% |
$ |
499 |
$ |
452 |
10% |
$ |
(68) |
$ |
(63) |
(8)% |
|||||||||||||||||||||||||||||||
N/M – not meaningful |
|
(a) |
Non-subscription / transaction revenue is primarily related to ratings of publicly-issued debt, bank loan ratings and corporate credit estimates. |
(b) |
Non-transaction revenue is primarily related to surveillance of a credit rating, annual fees for customer relationship-based pricing programs, fees for entity credit ratings and global research and analytics at CRISIL. Non-transaction revenue also includes an intersegment revenue elimination, which mainly consists of the royalty of $31 million and $63 million for the three and six months ended June 30, 2020, respectively, and $29 million and $58 million for the three and six months ended June 30, 2019 respectively, charged to Market Intelligence for the rights to use and distribute content and data developed by Ratings. |
(c) |
Subscription revenue is related to credit ratings-related information products, Market Intelligence Desktop products, investment research products and other data subscriptions, real-time news, market data and price assessments, along with other information products. |
(d) |
Asset-linked fees is primarily related to fees based on assets underlying exchange-traded funds, mutual funds and insurance products. |
(e) |
Sales usage-based royalty revenue is primarily related to trading based fees from exchange-traded derivatives and licensing of its proprietary market price data and price assessments to commodity exchanges. |
Revenue by Geographic Area |
||||||||||||||||||||||
(unaudited) |
U.S. |
International |
||||||||||||||||||||
2020 |
2019 |
% Change |
2020 |
2019 |
% Change |
|||||||||||||||||
Three Months |
||||||||||||||||||||||
Ratings |
$ |
618 |
$ |
454 |
36% |
$ |
388 |
$ |
347 |
12% |
||||||||||||
Market Intelligence |
331 |
304 |
9% |
185 |
183 |
1% |
||||||||||||||||
Platts |
71 |
71 |
(1)% |
146 |
142 |
3% |
||||||||||||||||
Indices |
199 |
201 |
(1)% |
41 |
34 |
19% |
||||||||||||||||
Intersegment elimination |
(19) |
(16) |
16% |
(17) |
(16) |
6% |
||||||||||||||||
Total revenue |
$ |
1,200 |
$ |
1,014 |
18% |
$ |
743 |
$ |
690 |
8% |
||||||||||||
Six Months |
||||||||||||||||||||||
Ratings |
$ |
1,112 |
$ |
852 |
30% |
$ |
719 |
$ |
645 |
12% |
||||||||||||
Market Intelligence |
669 |
611 |
9% |
365 |
358 |
2% |
||||||||||||||||
Platts |
142 |
141 |
1% |
291 |
279 |
4% |
||||||||||||||||
Indices |
422 |
384 |
10% |
77 |
68 |
14% |
||||||||||||||||
Intersegment elimination |
(37) |
(31) |
18% |
(31) |
(32) |
(2)% |
||||||||||||||||
Total revenue |
$ |
2,308 |
$ |
1,957 |
18% |
$ |
1,421 |
$ |
1,318 |
8% |
||||||||||||
Exhibit 7 |
|||||||||
S&P Global |
|||||||||
Non-GAAP Financial Information |
|||||||||
Three and six months ended June 30, 2020 and 2019 |
|||||||||
(dollars in millions) |
|||||||||
Computation of Free Cash Flow and Free Cash Flow Excluding Certain Items |
|||||||||
(unaudited) |
2020 |
2019 |
|||||||
Cash provided by operating activities |
$ |
1,617 |
$ |
1,010 |
|||||
Capital expenditures |
(18) |
(46) |
|||||||
Distributions to noncontrolling interest holders, net |
(92) |
(59) |
|||||||
Free cash flow |
$ |
1,507 |
$ |
905 |
|||||
Settlements of prior-year tax audits |
— |
50 |
|||||||
Payment of legal settlements |
— |
1 |
|||||||
Free cash flow excluding certain items |
$ |
1,507 |
$ |
956 |
|||||
S&P Global Organic Revenue |
||||||||||||||||||||||
(unaudited) |
Three Months |
Six Months |
||||||||||||||||||||
2020 |
2019 |
% Change |
2020 |
2019 |
% Change |
|||||||||||||||||
Total revenue |
$ |
1,943 |
$ |
1,704 |
14% |
$ |
3,729 |
$ |
3,275 |
14% |
||||||||||||
Ratings acquisitions |
(7) |
— |
(9) |
— |
||||||||||||||||||
Market Intelligence acquisition and divestitures |
(10) |
(8) |
(20) |
(15) |
||||||||||||||||||
Platts acquisitions and divestiture |
— |
(2) |
(1) |
(5) |
||||||||||||||||||
Total adjusted revenue |
$ |
1,926 |
$ |
1,694 |
14% |
$ |
3,699 |
$ |
3,255 |
14% |
||||||||||||
Organic revenue constant currency basis |
$ |
1,933 |
$ |
1,694 |
14% |
$ |
3,712 |
$ |
3,255 |
14% |
||||||||||||
Ratings Organic Revenue |
||||||||||||||||||||||
(unaudited) |
Three Months |
Six Months |
||||||||||||||||||||
2020 |
2019 |
% Change |
2020 |
2019 |
% Change |
|||||||||||||||||
Ratings revenue |
$ |
1,006 |
$ |
801 |
26% |
$ |
1,831 |
$ |
1,497 |
22% |
||||||||||||
Acquisitions |
(7) |
— |
(9) |
— |
||||||||||||||||||
Adjusted Ratings revenue |
$ |
999 |
$ |
801 |
25% |
$ |
1,822 |
$ |
1,497 |
22% |
||||||||||||
Market Intelligence Organic Revenue |
||||||||||||||||||||||
(unaudited) |
Three Months |
Six Months |
||||||||||||||||||||
2020 |
2019 |
% Change |
2020 |
2019 |
% Change |
|||||||||||||||||
Market Intelligence revenue |
$ |
516 |
$ |
487 |
6% |
$ |
1,034 |
$ |
969 |
7% |
||||||||||||
Acquisition and divestitures |
(10) |
(8) |
(20) |
(15) |
||||||||||||||||||
Adjusted Market Intelligence revenue |
$ |
506 |
$ |
479 |
5% |
$ |
1,014 |
$ |
954 |
6% |
||||||||||||
Platts Organic Revenue |
||||||||||||||||||||||
(unaudited) |
Three Months |
Six Months |
||||||||||||||||||||
2020 |
2019 |
% Change |
2020 |
2019 |
% Change |
|||||||||||||||||
Platts revenue |
$ |
217 |
$ |
213 |
2% |
$ |
433 |
$ |
420 |
3% |
||||||||||||
Acquisitions and divestiture |
— |
(2) |
(1) |
(5) |
||||||||||||||||||
Adjusted Platts revenue |
$ |
217 |
$ |
211 |
3% |
$ |
432 |
$ |
415 |
4% |
||||||||||||
Indices Organic Revenue |
||||||||||||||||||||||
(unaudited) |
Three Months |
Six Months |
||||||||||||||||||||
2020 |
2019 |
% Change |
2020 |
2019 |
% Change |
|||||||||||||||||
Indices revenue |
$ |
240 |
$ |
235 |
2% |
$ |
499 |
$ |
452 |
10% |
||||||||||||
Acquisitions and divestitures |
— |
— |
— |
— |
||||||||||||||||||
Adjusted Indices revenue |
$ |
240 |
$ |
235 |
2% |
$ |
499 |
$ |
452 |
10% |
||||||||||||
Adjusted Indices Net Operating Profit |
||||||||||||||||||||||
(unaudited) |
Three Months |
Six Months |
||||||||||||||||||||
2020 |
2019 |
% Change |
2020 |
2019 |
% Change |
|||||||||||||||||
Adjusted operating profit |
$ |
172 |
$ |
164 |
5% |
$ |
355 |
$ |
315 |
13% |
||||||||||||
Less: income attributable to NCI |
46 |
44 |
94 |
84 |
||||||||||||||||||
Adjusted Indices Net Operating Profit |
$ |
126 |
$ |
120 |
5% |
$ |
261 |
$ |
231 |
13% |
||||||||||||
Exhibit 8 |
|||||||||
S&P Global |
|||||||||
Non-GAAP Guidance |
|||||||||
Reconciliation of 2020 Non-GAAP Guidance |
|||||||||
(unaudited) |
|||||||||
Low |
High |
||||||||
GAAP Diluted EPS |
$ |
10.25 |
$ |
10.45 |
|||||
Deal-related amortization |
0.40 |
0.40 |
|||||||
Compensation for replacement equity awards and retention plans |
0.04 |
0.04 |
|||||||
Restructuring |
0.05 |
0.05 |
|||||||
Gain on disposition |
(0.03) |
(0.03) |
|||||||
Tax rate |
0.04 |
0.04 |
|||||||
Non-GAAP Diluted EPS |
$ |
10.75 |
$ |
10.95 |
|||||
This News has been Published in Partnership with PR Newswire
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Yango showcases latest innovations to transform urban transport at Mobility Live ME
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1 day agoon
May 3, 2024Abu Dhabi, UAE, Yango, an international tech company, made a significant impact as the Silver Sponsor at Mobility Live ME, the region’s most crucial event focusing on disruptive technology in mobility. Being committed to leveraging the power of technology to improve its users’ lives, Yango showcased its latest products and innovations and presented insights tailored to the MENA region’s evolving demands.
Building on its reputation for unique service offerings, the company recently launched Yango Drive, a comprehensive car rental marketplace integrated within the Yango SuperApp that is gaining substantial traction in Dubai. It features a digital booking system that offers an array of 3,500 cars, providing a seamless, high-quality rental experience from booking to return. This service reflects Yango’s commitment to comfort, convenience, and sustainability, supporting the shift towards shared mobility and aligning with the UAE’s Net Zero 2050 and Dubai Urban Plan 2040 initiatives.
Furthermore, in alignment with its dedication to enriching local communities, the ‘Prayer Mode’ for Muslim drivers was recently launched during the holy month of Ramadan. This feature facilitates drivers’ adherence to prayer schedules and includes innovative mapping and smart routing technologies to locate the nearest mosques. The app also mutes notifications during prayer times and provides directions to the Qibla, ensuring drivers can seamlessly balance their professional responsibilities with their religious practices.
Islam Abdul Karim, General Manager, Yango GCC, said: “We have seen great demand for our services since our entry into the market and are dedicated to developing a safe and comfortable urban transport system to keep up with this demand. With technology at the heart of our mission, we are not just responding to the current status but are actively shaping the future of mobility with innovative solutions and features. We will continue to set new standards in the industry, contributing to creating smart, sustainable cities.”
Islam spoke in a panel discussion at Mobility Live: “Movers and Shapers: Shining a Spotlight on the Game-Changers in Modern Transport Systems.” Shashi Shekhar Singh, Director of New Markets at Yango, delivered a keynote speech on the “Future of Mobility,” delving into how the company redefines urban mobility.
The company’s commitment to innovation is reflected in its diverse range of services, including Yango Maps, Yango ride-hailing service, Yango Play, Yango Tech, the advanced Arabic human-like AI voice assistant Yasmina, and many more, all of which are designed to enhance the everyday lives of local communities. As one of the leading apps in the region, the company is committed to supporting local transport providers, creating jobs, and fostering long-term partnerships with local communities and governments.
Chip series and SDK support next-generation Z-Wave capabilities for the global market.
Trident IoT, an RF technology and engineering company focused on decreasing time-to-market for connected device manufacturers, today announced the release of the new Taurus Z-Wave Series of silicon solutions.
The Trident IoT Taurus Z-Wave Series will encompass system-on-chip (SoC) solutions and modules that support the latest advancements in Z-Wave technology, including Z-Wave Long Range (ZWLR) for the U.S. and the implementation of the ZWLR European specification. The Taurus Z-Wave Series will ship with an SDK based on Open Z-Wave Specification Release 2024A.
“The Taurus Series gives global manufacturers access to cutting-edge Z-Wave capabilities,” said Trident IoT co-founder Bill Scheffler. “This silicon series and SDK will be the first to implement the ZWLR European specification, accelerating IoT product development worldwide.”
Taurus Series Silicon Specifications
The Taurus Series is based on an ultra-low power, high performance Z-Wave SoC. The Taurus SoC solution is designed to enable Z-Wave solutions with class-leading battery life, range, and memory.
Taurus Series chips feature an ARM® Cortex®-M33 microprocessor, 1MB of flash program memory, and 288KB of SRAM data memory for exceptional processing and response time. The powerful sub-GHz radios transmit at +20dBm and +14 dBm, enabling communication over distances up to 1+ miles.
Taurus chips support Z-Wave Plus, Z-Wave Plus v2 and ZWLR, enabling the development of highly secure, reliable, scalable, and backwards-compatible solutions for smart home, hospitality, multi-dwelling units and more. Using the ZWLR 12-bit addressing space, the Taurus Series supports networks of up to 4000 nodes; Taurus chips also leverage ZWLR dynamic power control, enabling end point battery life of up to ten years from a single coin-cell battery.
“ZWLR is a revolutionary technology, with the power to expand the reach, scale and utility of IoT applications while preserving full backward compatibility with currently deployed Z-Wave devices,” said Avi Rosenthal, Z-Wave Alliance Chairman of the Board. “This new Z-Wave silicon offering, paired with the Trident IoT SDK and design services, will enable more Z-Wave Alliance members to take advantage of ZWLR capabilities, bringing exciting new products to market faster around the globe.”
End-to-End Product Development Support
In line with the company’s mission to decrease time-to-market for IoT devices, Trident IoT will offer end-to-end engineering consultation for new products integrating Taurus Series silicon. In addition to the Taurus Series SDK, Trident IoT customers will also have access to an exclusive library of both Z-Wave and ZWLR device and sensor reference designs, created to accelerate the development of innovative new edge-of-property applications.
Trident IoT also offers in-depth consulting from some of the industry’s foremost experts on wireless connectivity, including Z-Wave technology. “Trident IoT was launched in response to a gap in the availability of IoT product design services,” says Mariusz Malkowski, Trident IoT CTO and founder. “The demand for consultation has been extraordinary: in just six months we’ve had to double our engineering resources.”
To support the development of market-ready products, the Trident IoT lab is fully equipped and available for Z-Wave, Z-Wave Plus v2, and ZWLR end product compliance and testing.
By providing silicon, design services, and in-house compliance testing, Trident IoT can help device manufacturers decrease time-to-market for new Z-Wave products by more than 60%. According to Kevin Kraus, VP of Technology Alliances and IoT Business Development, Yale – Fortune Brands Innovation, “In-depth consulting services from the Trident IoT team will be an invaluable accelerator for Fortune Brands, helping us to bring new Z-Wave-certified products to market in the near future. With the launch of this new single-die silicon solution, we look forward to collaborating on new devices with next-generation capabilities, including long-range and potentially even multi-protocol devices.”
Taurus Series Previews for Product Developers
Taurus Series silicon will begin shipping at scale in Q4 2024. In the meantime, Trident IoT will issue Taurus Series samples to select partners for initial testing and product development.
About Trident IoT:
Trident IoT is a technology and engineering company focused on simplifying RF development, increasing product success rates, and decreasing time-to-market for connected device manufacturers. Founded by a team of IoT veterans with over a century of industry knowledge, Trident IoT is aimed at making connected devices work as intended. With an initial focus on companies manufacturing Z-Wave devices, Trident IoT seeks to expand and build new relationships through a human connection at every level, including certification and market knowledge.
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Generative AI Surge Triggers Nationwide Rush for New Data Center Infrastructure
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April 30, 2024Demand for new AI Data Centers which are powering the rise of such popular AI platforms as OpenAI’s ChatGPT is being grossly underestimated according to analysts at this year’s Bloomberg Intelligence summit. The ongoing generative AI boom is kicking off a rush for new data centers, and the providers of the infrastructure behind them. With this boom comes many challenges including power supplies and the price of necessary hardware. For 9 of the top 10 US electric utilities, data centers have been the main source of customer growth, according to analysis made by Reuters. The booming Global Data Center Market is expected to hit US$792.3 billion by 2032, according to Astute Analytica, while analysts at Christian & Timbers have identified what they believe will be a 27% increase in AI data center talent demand in 2024 over 2023. Behind the scenes are several developers advancing the data center surge, who over the last week updated the market with recent developments, including: Avant Technologies Inc. (OTC: AVAI), Alphabet Inc. (NASDAQ: GOOG) (NASDAQ: GOOGL) (NEO: GOOG), Meta Platforms, Inc. (NASDAQ: META) (NEO: META), Pegasystems Inc. (NASDAQ: PEGA), and Advanced Micro Devices, Inc. (NASDAQ: AMD).
The article continued: Some experts are raising concerns that the AI revolution itself could crash the existing supply of data centers, and create a serious capacity shortage worldwide. All the while, Fortune is declaring private equity firms as the early winners in the race to feed AI’s infrastructure demands.
Avant Technologies to Implement AI-Empowered, Zero Trust Architecture in Its Data Centers
Avant Technologies, Inc. (OTCQB: AVAI) (“Avant” or the “Company”), an artificial intelligence technology (AI) company specializing in the development of advanced AI and data center infrastructure solutions, announced today its plans to implement a Zero Trust Architecture (ZTA) framework powered by AI within its data center operations. Avant asserts that this strategic move is aimed at providing the highest level of security for its customers’ critical data.
“By integrating AI with Zero Trust Architecture, we are creating a robust and future-proof security framework for our data centers,” stated William Hisey, Chief Executive Officer at Avant. “This combined approach ensures the highest level of security for our customers’ data while optimizing data center operations for efficiency and cost-effectiveness. Avant is committed to providing innovative technology to help businesses optimize data center operations, improve resource utilization, and enhance security.”
ZTA is a security model that eliminates the concept of inherent trust within a network. It assumes that all users, devices, and workloads – regardless of location – must be continuously verified before granting access to resources. Implementing AI-controlled ZTA allows Avant to achieve continuous authentication and authorization, enhanced threat detection and response, dynamic access controls, and adaptive security policies.
Avant’s ZTA implementation aligns seamlessly with its existing AI-powered data center management focus. The company’s AI technology already provides predictive analytics and optimization, automated incident response, and enhanced cooling efficiency.
In other industry developments and happenings in the market this week include:
Alphabet Inc. (NASDAQ: GOOG) (NASDAQ: GOOGL) (NEO: GOOG), best known as the parent company of Google and YouTube, recently broke ground on Google’s fourth data center in the Netherlands, as confirmed by Senior Operations Manager in a LinkedIn post. Valued at ~US$643 million, Google says the new data center will create 125 new jobs and has pledged to prioritize sustainability. The announcement is in line with the company’s commitment to invest billions of dollars in 2024 both inside the USA and abroad, where they’ve also announced plans to build a $1 billion data center campus in Kansas City, Missouri, and another $576-million data center project in Cedar Rapids, Iowa.
“Organizations and governments in the Netherlands are increasingly moving to the cloud,” said Google in a statement. “Cloud computing usage has almost doubled in the Netherlands in the last five years. The rise in demand is why Google is investing in digital infrastructure, which helps expand everybody’s access to information.”
Meta Platforms, Inc. (NASDAQ: META) (NEO: META), best known as the parent company of Facebook, WhatsApp and Instagram, announced plans to “accelerate infrastructure investments” for AI, including plans to spend billions of dollars more on servers and data centers. However, the initial response to the Facebook parent company’s plans was not positive. According to CEO Mark Zuckerberg, Meta plans to increase spending ahead of generating much revenue from their new products, reassuring his investors-call audience that Meta has a strong track record of monetizing new AI services once they reach scale.
“We anticipate our full-year 2024 capital expenditures will be in the range of $35-40 billion, increased from our prior range of $30-37 billion as we continue to accelerate our infrastructure investments to support our artificial intelligence (AI) roadmap,” said Susan Li, CFO for Meta Platforms in the quarterly financial report. “While we are not providing guidance for years beyond 2024, we expect capital expenditures will continue to increase next year as we invest aggressively to support our ambitious AI research and product development efforts.”
Pegasystems Inc. (NASDAQ: PEGA), the leading enterprise AI decisioning and workflow automation platform provider, recently announced its Q1 2024 financial results, highlighting’s the company’s outstanding cash flow and margin expansion in the quarter.
“The strong cash generation in Q1 demonstrates the power of a SaaS business,” said Ken Stillwell, COO and CFO of Pegasystems. “Given our financial strength and differentiated GenAI capabilities, we are in a great position to accelerate profitable growth.”
The financial results came just over a week from the company introduced its Pega Gena™ Coach, a generative AI-powered mentor for Pega solutions that proactively advises users to help them achieve optimal outcomes. Coach analyzes existing opportunity, lead, contact, and interaction data within Pega Sales Automation™ and offers suggestions to help overcome barriers in moving deals forward.
Advanced Micro Devices, Inc. (NASDAQ: AMD), a global semiconductor company, has credited its decision seven years ago to discontinue making monolithic datacenter chips in favor of a chiplet architecture with helping cut global greenhouse gas (GHG) emissions by tens of thousands of metric tons per year.
“Chiplets not only avoid waste and conserve resources in manufacturing, but also in the data centers powering the digital services and experiences we use daily,” said Justin Murrill, Director of Corporate Responsibility for AMD. “Each chiplet houses multiple processor cores, and different chiplets can be added and even stacked in a package to create higher-performance and more energy efficient processors.”
AMD’s EPYC processors are at the forefront in powering the most energy-efficient x86 servers available today. Employing these leading servers significantly reduces the number of physical servers required to fulfill computing needs. This reduction has a broad environmental benefit, including decreased use of raw materials, less manufacturing and shipping, reduced energy consumption, and minimized data center space requirements. Such advantages are vital for businesses aiming to upgrade their data center infrastructure and enhance computational capacity while actively striving to meet sustainability objectives.
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