Summary
The Nasdaq Stock Market, Inc. (NDAQ) reported strong financial performance for the nine months ended September 30, 2007. Total revenues increased significantly year-over-year, driven by robust growth in the Market Services segment, which benefited from higher trading volumes and increased market share in NYSE and Amex-listed securities. The Issuer Services segment also showed growth, attributed to revised annual renewal fees, recent acquisitions, and expanded corporate client services. A substantial driver of net income was a significant gain of $431.4 million from the sale of Nasdaq's share capital in the London Stock Exchange (LSE). This, along with gains on foreign currency option contracts and a strong operational performance, led to a substantial increase in net income and diluted earnings per share compared to the prior year. The company also successfully repaid its credit facilities using proceeds from the LSE sale, strengthening its balance sheet. Furthermore, Nasdaq is actively pursuing strategic acquisitions, including the proposed acquisitions of OMX AB, the Boston Stock Exchange, and the Philadelphia Stock Exchange, signaling a clear intent for significant expansion and market consolidation.
Key Highlights
- 1Total revenues grew to $1.77 billion for the nine months ended September 30, 2007, up from $1.21 billion in the same period of 2006.
- 2A significant gain of $431.4 million was realized from the sale of Nasdaq's share capital in the London Stock Exchange (LSE).
- 3Net income surged to $439.4 million for the first nine months of 2007, a substantial increase from $64.9 million in the prior year.
- 4Diluted earnings per share (EPS) rose to $2.94 for the nine months ended September 30, 2007, compared to $0.51 in the same period of 2006.
- 5The company successfully repaid and terminated its Credit Facilities totaling approximately $1.1 billion, using proceeds from the LSE sale.
- 6Nasdaq is actively pursuing strategic acquisitions, including agreements to acquire OMX AB, the Boston Stock Exchange, and the Philadelphia Stock Exchange.
- 7The Market Services segment demonstrated strong performance, with revenues less liquidity rebates, brokerage, clearance and exchange fees increasing by 19.1% to $600.7 million for the nine months ended September 30, 2007.