Trans-Atlantic exchange operator Nasdaq Inc on Thursday reported a rise in fourth quarter profit as acquisitions and growth from existing businesses drove revenues higher across its business units and cash equity trading volumes increased. Net income attributable to Nasdaq was $132 million, or 78 cents per diluted share in the quarter ended March 31, up from $9 million, or 5 cents per share, a year earlier when it took substantial restructuring charges to combat foreign exchange headwinds.
Excluding one-time items, such as acquisition costs and the impact from the strong dollar, Nasdaq earned 91 cents a share, up 14 percent from a year earlier and topping analysts' average estimate by 2 cents, according to Thomson Reuters I/B/E/S. Nasdaq's revenue grew 5 percent in the quarter to $534 million, mainly from growth within existing businesses.
"In addition, we expect our recently announced acquisitions, which are strategically aligned with our vision and business direction, to significantly enhance the effectiveness of our value proposition," Nasdaq Chief Executive Officer Robert Greifeld said in a statement. Market services revenue rose 6.9 percent to $201 million, helped by Nasdaq's acquisition of Canadian trading venue Chi-X Canada and higher industry trading volumes. Cash equity trading revenues were up 18.6 percent.
Technology solutions revenue, including corporate solutions and market technology, rose 3.1 percent to $134 million, helped by the acquisition of Canadian news distribution company Marketwired. Information services revenue, which includes market data and index licensing and services, rose 6.4 percent to $133 million, helped by higher index data and proprietary data revenues.
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