01—Abstract
Summary
Summary of the 10-K filed February 24, 2011. Cited figures are marked; the original filing is the authoritative source.
The NASDAQ OMX Group, Inc.'s 2010 10-K report details a global exchange group operating across six continents, providing trading, clearing, exchange technology, and listing services.
The company demonstrated resilience in 2010, with revenues less transaction rebates, brokerage, clearance, and exchange fees increasing by 4.7% to $1.52 billiona, driven by strong performance in derivative trading and clearing, and access services. Strategically, NASDAQ OMX continued to diversify and enhance its offerings through key acquisitions in 2010, including FTEN, Inc. (risk management solutions) and Zoomvision Mamato (webcasting services).
These moves underscore the company's commitment to expanding its technology and surveillance capabilities. Despite facing intense competition and market volatility, NASDAQ OMX maintained its position as a leading global exchange operator, highlighting its diversified operations, technological leadership, and experienced management team as key competitive strengths.
02—Key points
Key Highlights
- The NASDAQ OMX Group reported revenues less transaction rebates, brokerage, clearance, and exchange fees of $1.52 billion for 2010, a 4.7% increase from 2009.
- Key growth drivers included an increase in derivative trading and clearing revenues, access services, and a rebound in IPO activity.
- The company made strategic acquisitions in 2010, including FTEN, Inc. for risk management solutions and Zoomvision Mamato for webcasting services, further diversifying its business.
- Market Services remained the largest segment, contributing 67.3% of revenues, while Issuer Services and Market Technology contributed 22.6% and 10.0% respectively.
- Despite a decline in cash equity trading volumes and market share in the U.S., the company saw growth in European derivative trading and clearing.
- NASDAQ OMX continued its focus on technological innovation, with its INET platform powering multiple global markets and expanding its Genium INET offering.
- The company repurchased approximately $497 million of its common stock from Borse Dubai in December 2010 as part of its share repurchase program.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in FY2010, Nasdaq, Inc. kept $0.12.
- Revenue$3.19B100.0%
- Cost of revenue−$1.68B52.5%
- Gross profit$1.52B47.5%
- Operating costs−$885.0M27.7%
- Operating income$631.0M19.8%
- Interest, other & tax−$236.0M7.4%
- Net income$395.0M12.4%
Where FY2010 revenue went
$3.19B- Cost of revenue: $1.68B, 52% of revenue
- Operating costs: $885.0M, 28% of revenue
- Net income: $395.0M, 12% of revenue
- Interest, other & tax: $236.0M, 7.4% of revenue
Kept 12% as net income
Full revenue history →04—Financials
Financial Highlights
Figures from 10-KFY2010filed February 24, 2011Financial Statements
FY2010 against FY2009
| Line item | FY2010FY2009 | Change |
|---|---|---|
| Revenue | $3.19B$3.41B | −6.4% |
| Cost of Revenue | $1.68B$1.96B | −14.5% |
| Gross Profit | $1.52B$1.45B | +4.3% |
| Operating Expenses | $885.00M$850.00M | +4.1% |
| Operating Income | $631.00M$603.00M | +4.6% |
| Interest Expense | $102.00M$102.00M | 0.0% |
| Net Income | $395.00M$266.00M | +48.5% |
| EPS (Basic) | $0.65$0.43 | +49.2% |
| EPS (Diluted) | $0.64$0.42 | +52.8% |
| Shares Outstanding (Basic) | 608.93M614.09M | −0.8% |
| Shares Outstanding (Diluted) | 619.54M643.61M | −3.7% |
05—Questions
Frequently Asked Questions
What were the main drivers of NASDAQ OMX's revenue growth in 2010?
Revenue growth was primarily driven by increases in derivative trading and clearing revenues, access services, and a recovery in the IPO market. The company also saw contributions from new product offerings and strategic acquisitions that expanded its service portfolio.
How did the company's acquisition strategy impact its business in 2010?
In 2010, NASDAQ OMX strategically acquired FTEN, Inc. for its risk management technology and Zoomvision Mamato for its webcasting services. These acquisitions aimed to diversify the company's revenue streams and enhance its technology and surveillance capabilities.
What is the competitive landscape for NASDAQ OMX, and how is it addressing competition?
The company operates in a highly competitive environment with numerous global exchanges, alternative trading systems, and technology providers. NASDAQ OMX addresses this by focusing on its competitive strengths, including its diversified operations, leadership in exchange technology, commitment to regulatory integrity, and its experienced management team. It also engages in strategic pricing adjustments and continuous innovation.
How did the company's financial performance compare to the previous year?
In 2010, NASDAQ OMX showed an improvement in its financial performance compared to 2009. Revenues less transaction rebates, brokerage, clearance, and exchange fees increased by 4.7% to $1.52 billion, and operating expenses increased by 4.8%. Net income attributable to NASDAQ OMX rose to $395 million in 2010 from $266 million in 2009.
06—Continue