(Reuters) -Index provider MSCI reported a rise in first-quarter profit on Tuesday, as improved spending by clients drove up demand for its index products and analytics services.
Market volatility driven by economic uncertainty following U.S. President Donald Trump’s tariff announcements has prompted asset managers to swiftly adjust their portfolios, leading to greater demand for data and analytics services provided by companies such as MSCI.
Recurring subscriptions in its index segment rose 9.6% to $233.3 million in the first quarter from a year earlier, driven by growth from market-cap weighted index products.
Operating revenue rose 9.7% to $745.8 million, helped by an increase in recurring subscription revenues and asset-based fees.
However, operating expenses increased 8.3% to $368.8 million.
The company also spent more on compensation and incentives for its employees, as it raised its headcount by 5.6% to 6,184 employees as of March 31.
The data provider posted a profit of $288.6 million for the quarter ending March 31, or $3.71 per share, compared with $256 million, or $3.22 per share, a year earlier.
So far this year, MSCI’s shares have lost around 11%.
(Reporting by Prakhar Srivastava in Bengaluru; Editing by Leroy Leo)