How did NASDAQ OMX's revenue performance compare to the previous year?

For the second quarter of 2010, revenues less liquidity rebates, brokerage, clearance and exchange fees increased by 6.3% to $390 million compared to the same period in 2009. This growth was primarily attributed to an increase in Market Services revenues.

What were the significant expenses or charges impacting profitability?

A notable charge of $40 million was incurred in the first six months of 2010 related to the repayment of senior secured credit facilities. Additionally, losses on divestitures totaling $11 million were recorded due to the closure of NEURO and Agora-X businesses.

What is the company's capital management strategy, particularly regarding share repurchases?

NASDAQ OMX has an active share repurchase program. In March 2010, a program authorizing up to $300 million in repurchases was announced, and by June 30, 2010, $200 million had been executed. In July 2010, an additional $100 million authorization was approved, bringing the total available for repurchase to $200 million.

Has the company undertaken any strategic acquisitions or divested any businesses?

Yes, in 2010, NASDAQ OMX acquired Nord Pool ASA, a derivatives trading market, and North American Energy Credit and Clearing Corp., a clearinghouse for OTC power and gas markets. The company also made a strategic decision to close its Agora-X and NEURO businesses, recording associated losses.

NDAQ 10-Q Quarterly Report Q2 FY2010 — Revenue, Net Income, EPS

Summary

The NASDAQ OMX Group, Inc. (NDAQ) reported its financial results for the quarter and six months ended June 30, 2010. For the second quarter, the company saw an increase in revenues less liquidity rebates, brokerage, clearance and exchange fees to $390 million, a 6.3% rise from the prior year, driven by strong performance in Market Services, particularly U.S. cash equity trading and European derivative trading. Total operating expenses saw an increase, largely influenced by a $40 million charge related to the repayment of senior secured credit facilities in January 2010. Despite this, the company's net income attributable to NASDAQ OMX for the quarter was $96 million, resulting in diluted earnings per share of $0.46. The company also highlighted its proactive approach to capital management, including a $300 million share repurchase program and a new $950 million credit facility.

Financial Highlights

54 data points

Beta

Revenue

$886.00M

0.4% Gross Margin

Net Income

$96.00M

0.1% Net Margin

EPS (Diluted)

$0.15

Total Assets

$9.91B

Cash & Equivalents

$526.00M

Free Cash Flow

$230.00M

Financial Statements

Beta

Revenue	$886.00M
Cost of Revenue	$496.00M
Gross Profit	$390.00M
Operating Expenses	$211.00M
Operating Income	$179.00M
Interest Expense	$26.00M
Net Income	$96.00M
EPS (Basic)	$0.15
EPS (Diluted)	$0.15
Shares Outstanding (Basic)	616.55M
Shares Outstanding (Diluted)	628.24M

Key Highlights

1Revenues less liquidity rebates, brokerage, clearance and exchange fees increased by 6.3% to $390 million for Q2 2010 compared to Q2 2009, primarily driven by Market Services.
2Net income attributable to NASDAQ OMX was $96 million for Q2 2010, leading to diluted EPS of $0.46.
3The company experienced a significant charge of $40 million in the first six months of 2010 related to the repayment of senior secured credit facilities.
4Acquisitions during the period included Nord Pool ASA and North American Energy Credit and Clearing Corp., expanding the company's commodities and clearing offerings.
5The company announced and continued its share repurchase program, authorizing up to $300 million in repurchases, with $200 million executed by June 30, 2010.
6A new $950 million senior unsecured credit facility was established in January 2010, alongside the issuance of $1 billion in senior unsecured notes.
7Goodwill remained substantial at $4.5 billion, with no impairment recognized in the period.

NASDAQ, INC. Quarterly Report for Q2 Ended Jun 30, 2010

Summary

Financial Highlights

Key Highlights

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