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Banks

Nasdaq beats quarterly profit on strength in non-trading units

People work in the client experience space at the Nasdaq Market site in New York, U.S., May 2, 2019. REUTERS/Brendan McDermid

(Reuters) - U.S. exchange operator Nasdaq Inc NDAQ.O beat analysts' estimates for second-quarter profit on Wednesday, as a boost in its non-trading businesses, including information services, overshadowed a softer trading environment.

Nasdaq has been diversifying from its core trading business to focus on high-growth areas such as market technology and information services which help traders make investment decisions.

Revenue from its information services unit jumped about 11% to $194 million, and revenue at its market technology unit surged 20% to $79 million.

Revenue at the company’s market services unit, its biggest business, fell about 4% to $227 million, due to a softer trading environment.

Net income attributable to Nasdaq rose to $174 million, or $1.04 per share, in the second quarter ended June 30, from $162 million, or 97 cents per share, a year earlier. [reut.rs/2Z7cJV7]

Excluding one-time items, the company earned $1.22 per share, while analysts were looking for $1.20 per share, according to IBES data from Refinitiv.

Revenue, excluding transaction-based expenses, rose 1.3% to $623 million.

Reporting by Bharath Manjesh in Bengaluru; Editing by Saumyadeb Chakrabarty and Shailesh Kuber

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