Nasdaq Profit Rises on Strength Across Segments
April 27 2016 - 7:50AM
Dow Jones News
Nasdaq Inc. said Wednesday that first-quarter profit rose as the
company increased revenue across all of its segments.
Adjusted per-share earnings beat expectations.
Nasdaq has transformed from a U.S.-focused exchange operator to
a global business-services company that includes markets in the
U.S., Canada and the Nordic region, as well as investor, public
relations, technology and data services. In the quarter it closed
deals to buy Chi-X Canada, an alternative trading system for the
Toronto Stock Exchange, and news release distributor Marketwired.
The prices of both deals weren't disclosed.
For the quarter, Nasdaq reported a profit of $132 million, or 78
cents a share, up from $9 million, or 5 cents a share, a year
earlier. The prior quarter was hit by a restructuring charge.
Excluding restructuring- and acquisition-related charges and other
items, per-share earnings were 91 cents.
Revenue increased to 5.3% to $534 million from a year prior.
Analysts polled by Thomson Reuters expected per-share profit of 89
cents on revenue of $535 million.
For the latest quarter, market services revenue, which
contributes 38% to the exchange's top line, increased 6.9% to $201
million on higher trading volumes. Exchanges benefit more from
periods of heightened trading and volatility because the more
people trade, the more fees they collect on transactions.
The company's information-services segment, which represents 25%
of the top line, reported revenue increased 6.4% to $133 million,
on higher revenue from index data and proprietary data, and from an
acquisition.
The Marketwired acquisition and growth in surveillance product
drove its technology solutions segment to increase revenue 3.1% to
$134 million.
Despite a moribund market for initial public offerings in the
quarter, Nasdaq said all 10 U.S. IPOs went to it. In the quarter,
the market for initial public offerings is in its slowest period
since the first quarter of 2009, both in terms of number of deals
and total money raised, according to data provider Dealogic.
Listing services revenue increased 3.1% to $66 million.
Write to Austen Hufford at austen.hufford@wsj.com
(END) Dow Jones Newswires
April 27, 2016 07:35 ET (11:35 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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