Nasdaq earnings fall after acquisition spree
US stock exchange operator Nasdaq has reported falling earnings in its quarterly earnings, despite growing its revenue.
The figures
The company, which also runs exchanges in the Nordic region of Europe, reported net income attributable to Nasdaq of $131m (£107m), or 77 cents per diluted share, down from $138m and 80 cents in the same period last year.
Read more: Why Nasdaq's Nordic business believes it is bucking 2016's IPO slowdown
Excluding one-time items, net income came in at $154m, or 91 cents per diluted share, up from $151m and 88 cents.
Revenue during the period increased 11 per cent year-on-year to $585m.
Why it’s interesting
Nasdaq reported operating expenses of $352m, up from $298m last year, reflecting the acquisitions earlier this year of ChiX Canada, now known as Nasdaq CXC, Marketwired, Boardvantage and International Securities Exchange.
City PM understands that it is seen as a possible candidate also for the acquisition of the London Stock Exchange’s French clearing business LCH SA.
Read more: This chart shows how global markets have fallen in 2016
What the company said
Chief executive Bob Greifeld:
The third quarter's strong financial results showcase how the complementary nature of Nasdaq's business mix can deliver against a variety of macro backdrops.
While our marketplaces were subject to lower volatility and industry volumes compared to the prior year period, the company's non-trading segments expanded to new record levels.