Friday 29 March 2024
 
»
 
»
Story

Nasdaq OMX profit plunges 35pc

New York, May 1, 2010

Nasdaq OMX Group said its first-quarter profit fell 35 per cent because of special charges tied to debt issuance and other one-time costs.

The global exchange operator also saw a drop in its revenue as competition remains high for executing trades and the company's market share further eroded.

Nasdaq OMX earned $61 million or 28 cents per share, during the first quarter. It made $94m, or 44 cents per share, during the same quarter last year.

First-quarter results included $40m in charges tied to debt issuance costs as it refinanced a credit facility.

It also took $7m in charges from asset retirements and other one-time expenses.

Excluding those special charges, Nasdaq OMX earned $92m, or 43 cents per share.

Nasdaq OMX Group generated $360m in revenue, less liquidity rebates, brokerage, clearance and exchange fees.

That is down from $369m in the first quarter last year and was below analysts' expectations for revenue of $372.7m.

Revenue during the most recent quarter was also helped by favourable currency exchange. Revenue in the first quarter was boosted by $15m because of currency exchange when compared with revenue generated in the first quarter last year.

The fall in revenue also comes as newer trading platform operators continue to gain market share at the expense of Nasdaq OMX and NYSE Euronext.

Nasdaq OMX's market share of US equities trading was 23.9pc in the first quarter, compared with 25pc during the same period last year.




Tags: Nasdaq OMX |

More Capital Market Stories

calendarCalendar of Events

Ads