01—Abstract
Summary
Summary of the 10-Q filed November 3, 2010. Cited figures are marked; the original filing is the authoritative source.
NASDAQ OMX Group, Inc. reported solid financial performance for the nine months ended September 30, 2010, with revenues less liquidity rebates, brokerage, clearance and exchange fees increasing by 3.4% to $1,121 milliona.
Net income attributable to NASDAQ OMX was $258 millionb for the same period, a notable increase from $223 million in the prior year. The company demonstrated strong operational efficiency, with operating income remaining stable year-over-year at $455 million despite increased operating expenses, which were impacted by strategic initiatives and debt refinancing charges. The company also strengthened its balance sheet by issuing new debt and repaying existing credit facilities, while continuing to return capital to shareholders through its share repurchase program.
02—Key points
Key Highlights
- Total revenues less liquidity rebates, brokerage, clearance and exchange fees increased by 3.4% year-over-year to $1,121 million for the nine months ended September 30, 2010.
- Net income attributable to NASDAQ OMX grew to $258 million for the nine months ended September 30, 2010, up from $223 million in the prior year.
- Operating income was stable at $455 million for the nine months ended September 30, 2010, compared to $455 million in the prior year, indicating effective operational management.
- The company repaid significant debt obligations, including $1.7 billion of its senior secured credit facilities, and issued new senior unsecured notes and credit facilities totaling $1.7 billion in January 2010.
- Share repurchase program remained active, with $300 million repurchased during the nine months ended September 30, 2010, demonstrating a commitment to returning capital to shareholders.
- The company successfully integrated recent acquisitions, including SMARTS and Nord Pool ASA, contributing to diversification and strategic growth.
- The company's Market Services segment remains the largest revenue contributor, showing resilience and growth despite market volatility.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in Q3 FY2010, Nasdaq, Inc. kept $0.13.
- Revenue$757.0M100.0%
- Cost of revenue−$385.0M50.9%
- Gross profit$372.0M49.1%
- Operating costs−$207.0M27.3%
- Operating income$165.0M21.8%
- Interest, other & tax−$64.0M8.5%
- Net income$101.0M13.3%
04—Financials
Financial Highlights
Figures from 10-QQ3 FY2010filed November 3, 2010Financial Statements
Q3 FY2010 against Q3 FY2009
| Line item | Q3 FY2010Q3 FY2009 | Change |
|---|---|---|
| Revenue | $757.00M$810.00M | −6.5% |
| Cost of Revenue | $385.00M$461.00M | −16.5% |
| Gross Profit | $372.00M$349.00M | +6.6% |
| Operating Expenses | $207.00M$218.00M | −5.0% |
| Operating Income | $165.00M$131.00M | +26.0% |
| Interest Expense | $25.00M$26.00M | −3.8% |
| Net Income | $101.00M$60.00M | +68.3% |
| EPS (Basic) | $0.17$0.10 | +70.0% |
| EPS (Diluted) | $0.17$0.09 | +78.6% |
| Shares Outstanding (Basic) | 600.35M— | — |
| Shares Outstanding (Diluted) | 612.22M— | — |
05—Questions
Frequently Asked Questions
How did NASDAQ OMX's revenue perform in the first nine months of 2010 compared to the same period in 2009?
For the nine months ended September 30, 2010, NASDAQ OMX's revenues less liquidity rebates, brokerage, clearance and exchange fees increased by 3.4% to $1,121 million, compared to $1,084 million in the same period of 2009. This growth was primarily driven by increases in access services, derivative trading and clearing, and global index group revenues.
What significant changes occurred in NASDAQ OMX's debt structure during this period?
In January 2010, NASDAQ OMX significantly restructured its debt by issuing $1 billion in senior unsecured notes and entering into a $950 million senior unsecured credit facility. The proceeds were used to repay $1.7 billion of existing senior secured credit facilities. This move improved the company's debt profile and flexibility.
How is NASDAQ OMX managing its capital and returning value to shareholders?
NASDAQ OMX has actively managed its capital resources. During the first nine months of 2010, the company repurchased $300 million of its outstanding common stock under its share repurchase program. Additionally, the company benefited from strong cash flow from operations, which supported its financial activities and investments.
What impact did recent acquisitions have on the company's financial results?
The company completed several acquisitions, including SMARTS and Nord Pool ASA, in 2010. These acquisitions are expected to contribute to strategic diversification and growth, particularly in the Market Technology and Market Services segments. While the immediate financial impact is not detailed in the summary, they are integrated into the overall financial performance.
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