Market services business boosts Nasdaq's quarterly profit

Market services business boosts Nasdaq's quarterly profit

REUTERS: Exchange operator Nasdaq Inc posted a fourth-quarter profit, helped by higher revenue at its market services and non-trading related businesses.

Nasdaq has been increasing its presence in non-trading related businesses, which provides market data services, whose revenue streams are less affected by market volumes.

Revenue from its largest unit - market services, which oversees transactions, clearing and settlements, rose 2.9 percent to US$611 million helped by higher trading volumes.

Revenue from non-trading businesses, which includes information services and market technology, cumulatively rose 14.6 percent to US$243 million.

Nasdaq reported net income attributable of US$246 million, or US$1.45 per share, in the fourth quarter ended Dec. 31, compared with a loss of US$224 million, or US$1.35 per share, a year ago.

On an adjusted basis, the company earned US$1.05 per share, compared with analysts' average estimate of US$1 per share, according to Thomson Reuters I/B/E/S. It was not immediately clear if the numbers were comparable.

The fourth quarter included a decrease in tax expenses of about US$87 million related to the remeasurement of deferred tax liability due to the new U.S. tax law.

Operating expenses rose 1.6 percent from a year earlier to US$392 million.

Revenue, excluding transaction-based expenses, rose 6 percent to US$635 million, beating Wall Street estimate of US$630.4 million.

(Reporting By Aparajita Saxena in Bengaluru; Editing by Supriya Kurane)

Source: Reuters