Summary
The NASDAQ OMX Group, Inc. (NDAQ) reported its third-quarter and year-to-date results for the period ending September 30, 2011. The company demonstrated solid revenue growth across its segments, with total revenues (less transaction rebates, brokerage, clearance, and exchange fees) increasing by 17.7% to $438 million in Q3 2011 and by 13.2% to $1,269 million for the first nine months of 2011 compared to the prior year periods. This growth was primarily driven by strong performance in Market Services, particularly U.S. derivative trading and clearing, and continued expansion in Market Technology. Financially, the company managed its debt effectively, including refinancing its credit facilities and completing a tender offer for its 2013 Convertible Notes. Cash flow from operations remained robust, indicating a healthy liquidity position. Despite some headwinds from an uncertain economic environment and ongoing competition, NASDAQ OMX demonstrated resilience and strategic execution, positioning itself for continued operations and potential growth.
Financial Highlights
54 data points| Revenue | $944.00M |
| Cost of Revenue | $508.00M |
| Gross Profit | $436.00M |
| Operating Expenses | $241.00M |
| Operating Income | $195.00M |
| Interest Expense | $30.00M |
| Net Income | $110.00M |
| EPS (Basic) | $0.21 |
| EPS (Diluted) | $0.20 |
| Shares Outstanding (Basic) | 531.29M |
| Shares Outstanding (Diluted) | 542.77M |
Key Highlights
- 1Total revenues less transaction rebates, brokerage, clearance and exchange fees increased 17.7% to $438 million in Q3 2011 and 13.2% to $1,269 million for the nine months ended September 30, 2011.
- 2Market Services segment revenue grew by 20.5% in Q3 2011, driven by increases in Transaction Services, particularly U.S. derivative trading and clearing, and Market Data.
- 3Market Technology segment revenue saw a significant increase of 21.1% in Q3 2011, supported by growth in delivery projects and broker surveillance.
- 4Net cash provided by operating activities increased substantially by 69.6% to $436 million for the nine months ended September 30, 2011.
- 5The company successfully refinanced its credit facilities, entering into a new $1.2 billion senior unsecured five-year credit facility in September 2011.
- 6NASDAQ OMX completed a tender offer for $335 million of its 2013 Convertible Notes in October 2011, strengthening its balance sheet.
- 7The company ended the period with a healthy working capital of $697 million, an increase from $279 million at the end of 2010.