Nasdaq OMX core profit tops expectations
NASDAQ OMX Group’s core profit topped analysts’ expectations for the fourth quarter yesterday, boosted by a rise in revenue from market data and technology, which helped offset a soft trading environment.
Stock market volumes declined from the elevated levels of the prior quarter as volatility eased and investors moved to the sidelines.
But the parent of the Nasdaq stock market has diversified its revenues through a number of small “bolt-on” acquisitions over the years, and has reaped the benefits.
Higher demand for its proprietary data services helped drive the company’s market data revenue up 10 per cent, while market technology revenue rose four per cent from a year earlier due to recently delivered projects.
Transaction fees, meanwhile, slipped one per cent from a year earlier and were down 13 per cent from the prior quarter.
Nasdaq, which runs US and Nordic markets, earned $82m (£51.8m), or 45 cents per diluted share, in the fourth quarter, down from $137m, or 69 cents per share, a year ago.
Excluding one-time items associated with debt refinancing and merger and strategic initiatives, it earned 63 cents a share, compared to 55 cents in the year-prior quarter.
Revenue rose six per cent to $422m, versus expectations of $417.16m.