Transatlantic exchange operator Nasdaq OMX Group Inc on Friday reported a higher third-quarter profit, as lower expenses helped offset a decline in revenues driven in part by the impact of foreign exchange rates. Net income attributable to Nasdaq totalled $123 million, or 71 cents per share, up from $113 million, or 66 cents per share, a year earlier.
Excluding one-time items, the New York-based company earned 72 cents per share, beating the analysts' average estimate by 2 cents, according to Thomson Reuters I/B/E/S. Revenue fell 2 percent to $497 million. "Our unwavering focus on profitability led to declines in expenses, offsetting revenue headwinds from a number of discrete, temporary factors," said Chief Financial Officer Lee Shavel. Those factors included foreign exchange, a drop in data audit collections, and "certain planned revenue impacts in acquired businesses," he said in a statement.
Last year Nasdaq closed a $390 million deal to buy Thomson Reuters Corp's investor relations, public relations and multimedia services businesses. It also financed its $750 million purchase of eSpeed, the electronic Treasuries-trading platform, from BGC Partners Inc, a deal giving it a foothold in fixed income.
Operating expenses fell by 5 percent $290 million. The company said it lowered its non-GAAP operating expense guidance for 2014 to a range of $1.205 billion to $1.225 billion, down from the prior range of $1.220 billion to $1.250 billion. Nasdaq purchased $27 million of stock during the period, along with another $35 million so far in October. The company said its board had authorised an additional $500 million of stock repurchases.
Market services revenue at Nasdaq fell 3 percent to $194 million. Of that segment, derivatives, fixed income and access and broker services revenues all declined, while cash equities revenues rose. Listing services revenues were up 3.5 percent at $59 million, as Nasdaq introduced 76 new listings in the quarter, including 41 initial public offerings.
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