Market Data Revenues Prop Nasdaq OMX's Earnings
Strong revenues from market data services helped bolster Nasdaq OMX's second quarter results, by an inch that is.
The exchange operator reported net income of 93 million or 53 cents a share, up 1.1 percent from $92 million or 51 cents a share in the year-earlier period. Net revenue came to $424 million, up from $415 million.
The announcement of the bottom line results follows Nasdaq's reputational blemish in May when it couldn't cope with the high profile initial public offering of Facebook.
"This performance was a direct result of our continued focus on cost management, and the execution of our strategy to build strong, recurring and subscription-based revenue businesses that can drive growth, despite the trading environment," says Robert Greifeld, chief executive officer.
Revenues from market data services rose by 8 percent to $90 million in the second quarter of 2012 from $83 million in the year-earlier period. The access services business had an 11 percent year-to-year increase to $161 million. The increases helped offset a decline in revenues from cash equity trading, derivatives, issuer services and market technology of $2 million to reach $44 million.
Written by Chris Kentouris, Editor-in-chief (Chris can be contacted through Chris.Kentouris@hotmail.com)