Nasdaq OMX Group (NASDAQ:NDAQ) disclosed a 5.4% dip in second-quarter profits and an adjusted earnings miss on Wednesday as the exchange operator was hurt by costs tied to acquisitions.
Continue Reading Below
The owner of the Nasdaq Stock Market said it earned $88 million, or 52 cents a share, last quarter, compared with a profit of $93 million, or 53 cents a share, a year earlier.
Excluding one-time items, it earned 62 cents a share, up from 64 cents a share a year earlier but below the Street’s view of 63 cents.
Revenue came in at $451 million, exceeding consensus calls from analysts for $441 million.
However, total operating expenses jumped 16% to $292 million. Nasdaq cited the December acquisition of the public relations and investor relations divisions of Thomson Reuters (NYSE:TRI) for $390 million and other smaller deals.
“Today, across our expanded portfolio of businesses, we are now a #1 or #2 player in business segments that collectively comprise 96% of our revenues. Our position continues to validate the strategic direction of the organization and relentless focus on our clients,” Nasdaq CEO Bob Greifeld said in a statement.
Nasdaq said its market services revenue edged up to $190 million last quarter from $188 million the year before as derivatives revenue increased slightly.
Information services revenue inched up to $108 million from $106 million the year before, while technology solutions revenue jumped to $95 million from $70 million the year earlier. Listening revenue, which accounts for just 13% of total revenue, rose to $58 million last quarter from $55 million.
Shares of New York-based Nasdaq gained 0.35% to $33.96 early Wednesday morning, leaving them up almost 36% on the year.
By comparison, New York Stock Exchange parent NYSE Euronext (NYSE:NYX), which is set to report results on July 30, has rallied 31% so far in 2013.