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Thursday, November 06, 2008
Nasdaq OMX Profits From Increased Volume
By Dunstan Prial
FOXBusiness
Electronic stock exchange Nasdaq OMX Group (NDAQ) said Thursday its third-quarter profit dropped 84% from the same period a year ago, when the company had a large one-time gain from selling of its portion of the London Stock Exchange Group.
Net income was $60.1 million, or 28 cents per share, from July through September, down from $365 million, or $2.41 per share, in the same period in 2007.
During the year-ago third quarter, the Nasdaq OMX recorded a pretax gain of $431.4 million for the sale of its stake in the London Stock Exchange. The sale boosted earnings by $1.95 per share.
Excluding one-time items, Nasdaq OMX's adjusted third quarter earnings were $109.7 million, or 52 cents per share. That met expectations of analysts, who often exclude one-time items in their forecasts.
Nasdaq OMX benefited from increased volume during the third quarter as investors responded to the growing economic crisis by shifting equity holdings.
In addition, Nasdaq OMX has been expanding its operations, acquiring the Boston and Philadelphia stock exchanges recently in an effort to diversify and expand operations. Nasdaq OMX also recently launched a European exchange.
“All of the steps taken, including the acquisitions of the Philadelphia Stock Exchange and the Boston Stock Exchange, as well as the launch of NASDAQ OMX Europe, are designed to further diversify our product offerings while utilizing the same efficient platform,” Bob Greifeld, Nasdaq OMX's chief executive, said in a statement.
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