Summary
For the fiscal year ending December 31, 2013, NASDAQ OMX Group, Inc. demonstrated robust growth, driven by strategic acquisitions and performance across its diversified business segments. The company reported increased revenues, largely attributable to the acquisitions of the TR Corporate Solutions businesses and the eSpeed platform, which bolstered the Technology Solutions and Market Services segments, respectively. Despite a slight decrease in operating income, the company maintained a strong financial position, with a significant increase in net income and diluted earnings per share. NASDAQ OMX also highlighted its leading positions in various markets, including being the largest single cash equities market in the U.S. and operating a significant portion of European exchanges. Key strategic initiatives included integration of acquired businesses and investment in technology to enhance service offerings and maintain competitiveness. The company navigated a dynamic market environment marked by intense competition and evolving regulatory landscapes, particularly in Europe. NASDAQ OMX maintained its commitment to returning capital to shareholders through dividends and share repurchases, underscoring a focus on shareholder value while managing operational and market risks.
Financial Highlights
56 data points| Revenue | $3.21B |
| Cost of Revenue | $1.32B |
| Gross Profit | $1.90B |
| Operating Expenses | $1.21B |
| Operating Income | $688.00M |
| Interest Expense | $111.00M |
| Net Income | $385.00M |
| EPS (Basic) | $0.77 |
| EPS (Diluted) | $0.75 |
| Shares Outstanding (Basic) | 500.80M |
| Shares Outstanding (Diluted) | 513.80M |
Key Highlights
- 1NASDAQ OMX reported a 13.2% increase in revenues (less transaction rebates, brokerage, clearance, and exchange fees) to $1.9 billion in 2013, driven by acquisitions and growth in Information Services and Technology Solutions.
- 2The company's Technology Solutions segment saw a significant 58.1% revenue increase, largely due to the acquisition of Thomson Reuters' Corporate Solutions businesses.
- 3Net income attributable to NASDAQ OMX grew by 9.4% to $385 million, with diluted earnings per share rising 10.3% to $2.25.
- 4The NASDAQ Stock Market remained the largest single cash equities market in the U.S. by listed companies and share value traded, listing 2,637 companies with a $7.0 trillion market capitalization.
- 5The company completed significant acquisitions in 2013, including the TR Corporate Solutions businesses and the eSpeed platform, strengthening its service offerings and market presence.
- 6Despite increased operating expenses (up 22.7%) primarily due to acquisitions and associated integration costs, the company maintained operating income at $688 million.
- 7NASDAQ OMX continued its dividend payments, declaring $0.13 per share quarterly, and had $215 million remaining under its authorized share repurchase program as of year-end 2013.