01—Abstract
Summary
Summary of the 10-K filed February 24, 2012. Cited figures are marked; the original filing is the authoritative source.
The NASDAQ OMX Group, Inc.'s 2011 annual report highlights a strong year of growth and diversification, driven by its Market Services, Issuer Services, and Market Technology segments.
Despite a challenging economic environment, the company demonstrated resilience, with revenues less transaction rebates, brokerage, clearance, and exchange fees increasing by 11.0% to $1.69 billiona. This growth was primarily fueled by robust performance in Access Services and derivative trading and clearing, alongside continued strength in Market Data and Issuer Services. The company continued to execute its strategic acquisition plan, integrating new businesses to enhance its offerings in areas such as surveillance technology and corporate solutions.
NASDAQ OMX maintained its position as a leading global exchange operator, emphasizing technological innovation and a commitment to regulatory integrity. The report also details significant investments in technology infrastructure to support increased trading volumes and evolving market demands, positioning the company for continued competitiveness in the global financial landscape.
02—Key points
Key Highlights
- Total revenues less transaction rebates, brokerage, clearance and exchange fees grew by 11.0% to $1.69 billion in 2011, compared to $1.52 billion in 2010.
- Market Services remained the largest segment, contributing 67.4% of total revenues less transaction rebates, brokerage, clearance and exchange fees.
- The company completed several strategic acquisitions in 2011, including Glide Technologies and RapiData, to expand its service offerings and market reach.
- The NASDAQ Stock Market continued to be a leading venue for cash equities trading, facilitating significant share value traded.
- The company's Market Technology segment saw revenue growth of 20.4%, driven by license, support, and delivery projects.
- NASDAQ OMX reported a net income attributable to NASDAQ OMX of $387 million for 2011, with diluted earnings per share of $2.15.
- The company repurchased approximately $100 million of its common stock during the fourth quarter of 2011 under its approved share repurchase program.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in FY2011, Nasdaq, Inc. kept $0.11.
- Revenue$3.44B100.0%
- Cost of revenue−$1.75B50.8%
- Gross profit$1.69B49.2%
- Operating costs−$994.0M28.9%
- Operating income$696.0M20.2%
- Interest, other & tax−$309.0M9.0%
- Net income$387.0M11.3%
Where FY2011 revenue went
$3.44B- Cost of revenue: $1.75B, 51% of revenue
- Operating costs: $994.0M, 29% of revenue
- Net income: $387.0M, 11% of revenue
- Interest, other & tax: $309.0M, 9.0% of revenue
Kept 11% as net income
Full revenue history →04—Financials
Financial Highlights
Figures from 10-KFY2011filed February 24, 2012Financial Statements
FY2011 against FY2010
| Line item | FY2011FY2010 | Change |
|---|---|---|
| Revenue | $3.44B$3.19B | +7.7% |
| Cost of Revenue | $1.75B$1.68B | +4.4% |
| Gross Profit | $1.69B$1.52B | +11.5% |
| Operating Expenses | $994.00M$885.00M | +12.3% |
| Operating Income | $696.00M$631.00M | +10.3% |
| Interest Expense | $119.00M$102.00M | +16.7% |
| Net Income | $387.00M$395.00M | −2.0% |
| EPS (Basic) | $0.73$0.65 | +13.4% |
| EPS (Diluted) | $0.72$0.64 | +12.6% |
| Shares Outstanding (Basic) | 529.00M608.93M | −13.1% |
| Shares Outstanding (Diluted) | 540.03M619.54M | −12.8% |
05—Questions
Frequently Asked Questions
What were the main drivers of revenue growth for The NASDAQ OMX Group in 2011?
Revenue growth was primarily driven by increases in Access Services revenues, derivative trading and clearing revenues, Market Data revenues, and Issuer Services revenues, particularly from Corporate Solutions. These were bolstered by recent acquisitions like FTEN and Glide Technologies.
How did the company's Market Services segment perform in 2011?
The Market Services segment remained the largest, with revenues less transaction rebates, brokerage, clearance and exchange fees increasing by 11.0% to $1.14 billion. This segment includes Transaction Services (cash equity, derivatives, access), Market Data, and Broker Services.
What is the company's outlook for 2012?
The company anticipates a positive year, expecting continued global economic recovery to support its business drivers. They plan to leverage their technology for new market opportunities and continue to diversify through product enhancements and potential acquisitions.
What were the key acquisitions made by the company in 2011?
In 2011, The NASDAQ OMX Group acquired Glide Technologies Limited, a corporate communications and reputation management specialist, and RapiData LLC, a provider of machine-readable economic news.
06—Continue