IHS Markit (INFO) Q3 2016 Earnings Call

Todd Hyatt – Executive Vice President and CFO

A decline in the subscription base in Q3

“In Q3, on a constant currency basis, our resources organic subscription base, which represents the annualized value of subscription contracts, declined $19 million and through the first three quarters, the sub bases declined 8% on a base of $700 million. The Q3 subscription-based decline was primarily from customers reducing their geographic coverage, the long tail of America’s smaller independents experiencing a higher than normal cancellation rate and customers deferring to renew software maintenance.”

Constrained budgets in oil companies

“Despite oil prices beginning to stabilize, companies continue to operate in a budget constrained environment and recent global events have caused additional market uncertainty.”

Rising interest rates to positively affect financials but have not impact on core legacy businesses

“I think in financials, I think it would probably a net positive because probably at some level of volatility and improve overall volume levels and I think that is probably the biggest driver that we would see in financials. In the core legacy IHS businesses, I don’t see a big impact from interest rates going up. I just, I don’t see that a rate hike would flow through to the business in a material way.”