* Q4 profit of 64 cents a share, minus items, beats
expectations by 3 cents
* Net revenues of $419 mln, vs analysts' expectations of
* Says expects 2013 operating expenses in range of $960 mln
to $990 mln
By John McCrank
NEW YORK, Jan 31 Nasdaq OMX Group
reported a higher fourth-quarter profit on Thursday, as an
increase in non-transaction-based revenues outweighed an
industry-wide drop in trading volumes.
Net income attributable to the transatlantic exchange
operator totaled $85 million, or 50 cents a share, up from $82
million, or 45 cents a share, a year earlier.
Stripping out one-time items including restructuring,
merger, and legal expenses, Nasdaq said it earned 64 cents a
share. That was 3 cents above analysts' expectations, on
average, according to Thomson Reuters I/B/E/S.
Revenues, not including transaction rebates, brokerage,
clearance and exchange fees, were $419 million, compared to $420
million a year earlier. Analysts had expected revenue of $412.01
Nasdaq's results were "driven by a significant pick-up in
corporate activity coupled with solid performance in our U.S.
options, U.S. proprietary data products and global index
businesses," Bob Greifeld, the company's chief executive, said
in a statement.
Nasdaq has been diversifying away from transaction-based
revenues over the past several years, putting more of a focus on
business units that provide a steadier income flow through
providing services like technology and data to other companies.
In December, the New York-based company agreed to buy
Thomson Reuters Corp's investor relations, public relations and
multimedia services units for $390 million.
Issuer Services, which make up 24 percent of Nasdaq's total
net revenues, rose by $10 million from a year earlier to $101
million, mainly due to growth in Nasdaq's corporate solutions
business, which benefited from acquisitions in May 2012 and
Nasdaq said revenues in its market services unit, which
includes cash equities and derivatives, and makes up 64 percent
of total net revenues, were $270 million, down $11 million from
the fourth quarter of 2011.
Cash equities, which made up 11 percent of total net
revenues, were down $12 million from the year-earlier quarter at
$47 million, due to lower trading volumes and a slight drop in
market share. Derivatives trading and clearing revenues, which
made up 18 percent of total revenues, rose by $2 million to $75
Access and broker services revenues were $65 million, up $4
million from the fourth quarter of 2011, while market data
revenues, which make up 20 percent of total net revenues,
dropped by $4 million to $83 million.
Market technology revenues, which made up 12 percent of
total net revenues, were flat from a year earlier at $48
Nasdaq said it expects its total operating expenses for 2013
to be in the range of $960 million to $990 million, and that it
expects a 2013 effective tax rate in the range of 34 percent to