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Nasdaq clocks 12% rise in profit on high trading volume

Nasdaq Inc recorded a 12 percent jump in quarterly profit as higher trading volume and acquisition of Dorsey Wright helped the transatlantic exchange operator perform better. Analysts forecast earnings of 86 cents per share.

China's economy slowdown and its volatile financial markets pushed higher trading volume in equities on Nasdaq. Nasdaq Private Market LLC unit has bought Second Market Solutions Inc, an equity management firm, for an undisclosed amount.

The Nasdaq's board of directors has announced a regular quarterly dividend of $0.25 per share.

The net income of the exchange for the third quarter rose to $138million or 80cents per share from $123mn or 71 cents per share.

Nasdaq Inc had earned 88 cents per diluted share. This is without the one-time items including restructuring charges and currency headwinds. 

Analysts forecast that net income would be 86 cents per share. Revenues without transaction-related expenses grew 6.4 percent to $529mn as concerns about China's economy slowdown have resulted in more trading volume on Nasdaq. 

Adjusted earnings per share rose to $0.88 per share from $0.78 per share during the third quarter. It's higher than the forecast of $0.86 per share in a survey by Thomson Reuters. The net revenues grew by six percent to $529mn from $497mn. This was against higher than the average forecast of $526.18mn by analysts.

The $55mn additional revenues from operations were offset by a $23mn negative impact of foreign exchange rate. The third quarter net revenues without forex rate revenues and acquisitions were up nine percent across the non-trading segments. The organic revenue growth was recorded at eight percent.

The board of directors at Nasdaq has announced a regular quarterly dividend of $0.25 per share. The dividend is due for payment on 28 December 2015 to the shareholders.

The future declarations of quarterly dividends and future record dates and payment dates would be decided by the board of directors. 

Nasdaq Inc registered net revenue from market services that grew 5.8 percent to $200mn. Strong cash equity trading volumes have further boosted net revenues for the exchange.

Market data, index licensing and services have pushed information services revenues for the exchange to the tune of $132mn indicating 15.8 percent growth rate. 

The acquisition of Dorsey Wright, a data analytics firm, in January 2015, has also contributed revenues to grow.

Nasdaq Private Market LLC unit has bought Second Market Solutions Inc, an equity management firm, for an undisclosed amount, according to a statement from Nasdaq, which is a leading provider of trading, clearing, exchange technology, listing, information and public company services across six continents.


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