01—Abstract
Summary
Summary of the 10-K filed February 18, 2010. Cited figures are marked; the original filing is the authoritative source.
The NASDAQ OMX Group, Inc.'s 2009 10-K filing reveals a company solidifying its position as a global exchange leader following significant acquisitions in 2008.
Despite a slight decrease in total revenues less liquidity rebates, brokerage, clearance and exchange fees, down 0.5% to $1,453 milliona, the company demonstrated operational growth, particularly in derivative trading and clearing, and market technology. The company successfully navigated a challenging economic environment, with a notable shift towards a stronger U.S. equity trading performance in the latter part of the year.
NASDAQ OMX is strategically leveraging its technology, particularly the INET platform, across its global operations, anticipating future growth and efficiency gains. The company also highlighted its diversification across market services, issuer services, and market technology, aiming to capitalize on evolving market demands and technological advancements.
02—Key points
Key Highlights
- Total revenues less liquidity rebates, brokerage, clearance and exchange fees decreased slightly by 0.5% to $1,453 million in 2009, indicating a resilient revenue base amidst economic challenges.
- Derivative trading and clearing revenues saw significant growth, driven by the full-year inclusion of NASDAQ OMX PHLX and NASDAQ OMX Commodities, alongside increased market share.
- Market Technology revenues increased by 21.8% to $119 million, demonstrating strong demand for NASDAQ OMX's technological solutions globally.
- The company has strategically integrated its acquired businesses, including OMX AB and PHLX, and is leveraging its INET technology platform across its U.S. and European markets to enhance efficiency and offer new services.
- Issuer Services revenues saw a slight decrease of 5.5% to $324 million, largely due to a decline in U.S. listing fees, reflecting broader trends in the IPO market.
- NASDAQ OMX maintained compliance with all debt covenants and is strategically managing its capital structure, including refinancing its credit facilities in early 2010.
- The company is actively managing risks, including competition, market volatility, and technological changes, while emphasizing its commitment to regulatory integrity.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in FY2009, Nasdaq, Inc. kept $0.08.
- Revenue$3.41B100.0%
- Cost of revenue−$1.96B57.4%
- Gross profit$1.45B42.6%
- Operating costs−$850.0M24.9%
- Operating income$603.0M17.7%
- Interest, other & tax−$337.0M9.9%
- Net income$266.0M7.8%
Where FY2009 revenue went
$3.41B- Cost of revenue: $1.96B, 57% of revenue
- Operating costs: $850.0M, 25% of revenue
- Net income: $266.0M, 7.8% of revenue
- Interest, other & tax: $337.0M, 9.9% of revenue
Kept 7.8% as net income
Full revenue history →04—Financials
Financial Highlights
Figures from 10-KFY2009filed February 18, 2010Financial Statements
FY2009 against FY2008
| Line item | FY2009FY2008 | Change |
|---|---|---|
| Revenue | $3.41B$3.65B | −6.5% |
| Cost of Revenue | $1.96B$2.19B | −10.6% |
| Gross Profit | $1.45B$1.46B | −0.5% |
| Operating Expenses | $850.00M$820.00M | +3.7% |
| Operating Income | $603.00M$640.00M | −5.8% |
| Interest Expense | $102.00M$97.00M | +5.2% |
| Net Income | $266.00M$314.00M | −15.3% |
| EPS (Basic) | $0.43$0.55 | −21.2% |
| EPS (Diluted) | $0.42$0.52 | −19.4% |
| Shares Outstanding (Basic) | 614.09M— | — |
| Shares Outstanding (Diluted) | 643.61M— | — |
05—Questions
Frequently Asked Questions
What was NASDAQ OMX's financial performance in 2009 compared to 2008?
In 2009, NASDAQ OMX's total revenues less liquidity rebates, brokerage, clearance and exchange fees slightly decreased by 0.5% to $1,453 million, compared to $1,460 million in 2008. This was primarily due to a $45 million unfavorable impact from foreign exchange, which offset a $38 million increase due to operational growth. Key areas of operational growth included derivative trading and clearing, and market technology services.
How did the company's acquisitions in 2008 impact its 2009 results?
The acquisitions of OMX AB, PHLX, and Nord Pool businesses in 2008 significantly impacted the 2009 results. These acquisitions contributed to increased operating expenses and interest expense due to full-year inclusion of their financials and debt financing. However, they also drove operational growth, particularly in derivative trading and clearing, and market technology.
What are the main business segments of NASDAQ OMX, and how did they perform in 2009?
NASDAQ OMX operates in three main segments: Market Services, Issuer Services, and Market Technology. In 2009, Market Services accounted for 67.0% of revenues less liquidity rebates, brokerage, clearance and exchange fees, although it saw a slight decrease of 1.3%. Issuer Services accounted for 22.3% of revenues but decreased by 5.5%, largely due to lower U.S. listing fees. Market Technology represented 10.0% of revenues and showed strong growth of 21.8%.
What is the company's outlook for 2010 based on this filing?
NASDAQ OMX anticipates a more positive business environment in 2010, expecting a recovery in the IPO market and continued demand for equity capital. The company plans to leverage its technological strengths, particularly the INET platform, and diversify its business through enhanced product offerings and potential acquisitions. They believe their cost and technology synergies from 2008 and 2009 will position them well for growth.
06—Continue