NASDAQ OMX Reports Second Quarter 2013 Results
Second quarter 2013 non-GAAP diluted EPS of
$0.62, second quarter 2013 GAAP diluted EPS of $0.52.
Second quarter 2013 net revenues1 were a record
$451 million, up 8% from the prior year quarter's non-GAAP net revenue. On an organic basis, assuming constant currency and excluding acquisitions, net revenues increased 1% year-over-year.
- All four business segments experienced organic revenue growth year-over-year.
- Non-transaction based revenues were 72% of our total second quarter 2013 net revenues, and increased 10% from the prior year quarter.
During the second quarter,
NASDAQ OMXclosed two strategically significant acquisitions, the Thomson Reuters' IR, PR and Multimedia businesses, and the eSpeed benchmark Treasury trading platform.
"Our strategy is focused on becoming an entrenched provider of corporate, trading, technology, and information products and services that allow our customers to more effectively navigate today's global capital markets," said
Operating expenses were
Second quarter 2013 non-GAAP diluted earnings per share were
On a GAAP basis, net income attributable to
"While we are pleased with the broad-based performance across many of our businesses, we experienced unique variances in our cost structure, including financing costs of approximately
1 Represents revenues less transaction rebates, brokerage, clearance and exchange fees.
Market Services (42% of total net revenues) - Net revenues were
Derivatives (17% of total net revenues) — Total net derivative trading and clearing revenues were
$76 millionin the second quarter of 2013, up $6 millioncompared to the second quarter of 2012. Net U.S. derivative trading and clearing revenues increased 9% year-over-year due to higher industry volumes and market share, partially offset by lower average pricing. European derivative trading and clearing revenues increased $2 million, primarily due to higher energy commodity volumes and favorable foreign exchange impact.
Cash Equities(11% of total net revenues) — Total net cash equity trading revenues were $51 millionin the second quarter of 2013, down $1 millioncompared to non-GAAP revenues in the second quarter of 2012. Lower net U.S. equities revenues, primarily due to lower market share, were partially offset by higher European equities revenue, driven primarily by higher average pricing, higher volumes and share, and a favorable impact from foreign exchange.
Access and Broker Services (14% of total net revenues) — Access and broker services revenues totaled
$63 millionin the second quarter of 2013, down $3 millioncompared to the second quarter of 2012. Connectivity and co-location saw modestly lower demand in the second quarter of 2013 compared to the second quarter of 2012, but newer products, such as microwave connectivity and FinQloud, are seeing increased demand.
Information Services (24% of total net revenues) — Revenues were
Market Data (20% of total net revenues) — Total market data revenues were
$90 millionin the second quarter of 2013, flat compared to the second quarter of 2012. The second quarter of 2013 saw a $2 milliondecrease in audit collections, offset by growth in products such as NASDAQ Basic, and select pricing initiatives.
Index Licensingand Services (4% of total net revenues) — Index licensing and services revenues were $18 millionin the second quarter of 2013, up $2 millionfrom the second quarter of 2012. The revenue growth was a function of materially higher assets and number of licensed exchange traded products, including the impact of the acquisition of the index business of Mergent, Inc.
Technology Solutions (21% of total net revenues) - Revenues were
Corporate Solutions (10% of total net revenues) — Corporate solutions revenues were
$44 millionin the second quarter of 2013, up $22 millionfrom the second quarter of 2012. Corporate solutions revenue growth was primarily due to the inclusion of one month of results from the acquisition of the Thomson Reuters' IR, PR, and Multimedia businesses, as well as organic growth, in particular the growth of Directors Desk, IR Suite, and PR distribution.
Market Technology (11% of total net revenues) — Market technology revenues were
$51 millionin the second quarter of 2013, up $6 millionfrom the second quarter of 2012. The revenue increase is due to the acquisition of BWise in the second quarter of 2012, as well as growth in SMARTS Broker and a favorable impact from foreign exchange. Order intake in the second quarter of 2013 decreased, from $82 millionin the second quarter of 2012 to $44 millionin the second quarter of 2013, and a material amount of deliveries reduced the backlog to $507 million, compared to $538 millionin the prior year period.
Listing Services (13% of total net revenues) — Revenues were
COST GUIDANCE — The Thomson Reuters' IR/PR/MM businesses and eSpeed acquisitions have been incorporated into the expense forecast and are expected to add between
Closed acquisition of IR, PR & Multimedia businesses of Thomson Reuters. On
May 31, 2013, NASDAQ OMXclosed the acquisition of the Investor Relations, Public Relations, and Multimedia businesses of Thomson Reuters, which are now incorporated into the Corporate Solutions business, where they are being integrated with NASDAQ OMX'slegacy corporate solutions products.
Closed acquisition of eSpeed. On
June 28, 2013, NASDAQ OMXclosed the acquisition of the eSpeed platform for trading U.S. Treasuries. NASDAQ OMX intends to leverage its strong technology experience and leading distribution capabilities to further develop eSpeed's leading marketplace, while enjoying the structural tailwinds of a growing U.S. Treasury market.
Launched NLX futures exchange. On
May 31, 2013, NASDAQ OMXlaunched NLX, a new London-based market offering a range of both short-term and long-term interest rate derivative products, with the support of a wide range of founding participants including banks, clearing, brokerage and trading firms.
- Launched WorkSpace. WorkSpace is a new cloud computing platform that will expand the company's Corporate Solutions client base and enter the burgeoning virtual data room (VDR) market. The technology provides a paperless VDR for secure and effective document sharing typically used for mergers and acquisitions, pre-IPO due diligence review, bankruptcy and restructuring, and other applications.
Investment-grade debt rating affirmed by S&P and Moody's and successful Euro-denominated bond offering. After reviewing
NASDAQ OMX'sdebt rating following the announcement of the eSpeed acquisition, both S&P & Moody's affirmed investment-grade credit ratings. NASDAQ OMX issued and sold €600 million aggregate principal amount of bonds with an 8-year tenor and a 3.9% effective yield, with proceeds used primarily to fund the eSpeed acquisition.
The inventor of the electronic exchange,
In addition to disclosing results determined in accordance with GAAP,
The non-GAAP information is not prepared in accordance with GAAP and may not be comparable to non-GAAP information used by other companies. The non-GAAP information should not be viewed as a substitute for, or superior to, other data prepared in accordance with GAAP.
Cautionary Note Regarding Forward-Looking Statements
Information set forth in this communication contains forward-looking statements that involve a number of risks and uncertainties. NASDAQ OMX cautions readers that any forward-looking information is not a guarantee of future performance and that actual results could differ materially from those contained in the forward-looking information. Such forward-looking statements include, but are not limited to (i) projections about our future financial results, growth, trading volumes, taxes and achievement of synergy targets, (ii) statements about the closing or implementation dates and benefits of certain strategic, de-leveraging and capital return initiatives, (iii) statements about our integrations of our recent acquisitions and (iv) other statements that are not historical facts. Forward-looking statements involve a number of risks, uncertainties or other factors beyond
The financial tables will follow in a separate release shortly.
CONTACT: Contact Media Relations:
Joseph Christinat+1.646.441.5121 Joseph.Christinat@NASDAQOMX.Com Contact Investor Relations: Ed Ditmire+1.212.401.8737 Ed.Ditmire@NASDAQOMX.Com
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