The NASDAQ OMX Group, Inc.
24.04.2013 13:00
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-- First quarter 2013 non-GAAP diluted EPS of $0.64, tied for the second
highest quarterly performance in company history; first quarter 2013 GAAP
diluted EPS of $0.25.
-- First quarter 2013 net exchange revenues1 were $418 million, up 1% from the
prior year quarter.
-- Non-transaction based revenues were 72% of our first quarter 2013 net
exchange revenues, compared to 69% in the prior year quarter, and increased
5% from the prior year quarter.
-- First quarter 2013 non-GAAP operating expenses of $237 million increased 2%
from the prior year quarter.
-- Beginning in 2013, we realigned our reportable segments as a result of
changes to the organizational structure of our businesses.
NEW YORK, 2013-04-24 13:00 CEST (GLOBE NEWSWIRE) -- The NASDAQ OMX Group, Inc.
(Nasdaq:NDAQ) today reported results for the first quarter of 2013. First
quarter net exchange revenues were $418 million, up from $414 million in the
prior year period, driven by increases in our Global Technology Solutions and
Global Information Services segments, partially offset by lower U.S. cash
equity trading revenues. On an organic basis (constant currency and excluding
acquisitions) first quarter net exchange revenues decreased 2% year-over-year.
Operating expenses were $328 million in the first quarter of 2013, compared to
$243 million in the prior year quarter. On a non-GAAP basis, first quarter 2013
operating expenses were $237 million, up 2% as compared to the prior year
quarter. On an organic basis (constant currency and excluding acquisitions),
first quarter non-GAAP operating expenses fell 3% year-over-year.
First quarter 2013 non-GAAP diluted earnings per share were $0.64, up $0.03
compared to the prior year quarter. Non-GAAP diluted earnings per share in the
first quarter of 2013 exclude $62 million of expenses accrued for the one-time
voluntary accommodation program. This program, which was approved by the SEC on
March 22, 2013, expands the pool available to compensate members of the NASDAQ
Stock Market for qualified losses arising directly from the system issues
experienced with the Facebook IPO that occurred on May 18, 2012.
As previously disclosed, the staff of the SEC's Division of Enforcement is
conducting an investigation relating to these systems issues. Although the
Commission has not reached a final conclusion, NASDAQ OMX may pay $10 million
in connection with the potential resolution of this matter. As a result,
non-GAAP diluted earnings per share in the first quarter of 2013 also exclude
$10 million of expenses accrued for this estimated liability.
Non-GAAP diluted earnings per share in the first quarter of 2013 further
exclude $10 million of non-cash asset impairment charges, $9 million of
restructuring charges, $8 million of merger and strategic initiatives expenses,
and $2 million of special legal expenses. On a GAAP basis, net income
attributable to NASDAQ OMX for the first quarter of 2013 was $42 million, or
$0.25 per diluted share, compared with $85 million, or $0.49 per diluted share,
in the prior year quarter.
--------------------------------------------------------------------------------
1 Represents revenues less transaction rebates, brokerage, clearance and
exchange fees.
'The successful execution of our strategy has delivered solid first quarter
results,' said Bob Greifeld, CEO, NASDAQ OMX. 'While the volume environment
remained challenging, our portfolio of corporate, trading, technology, and
information businesses continue to deliver consistent revenue and earnings
performance. We remain focused on helping our clients manage the growing
complexity and connectivity, which is required to optimize today's global
business environment, by delivering products and services that enhance
efficiency and productivity in the environments in which they operate.'
Mr. Greifeld continued, 'Looking forward in 2013, while we are confident that a
recovering economy and increasing investor confidence will eventually lead to
stronger tailwinds for our businesses, our diverse client base of investors,
financial institutions, exchanges, and regulators, and public and private
companies, are not waiting idly by, and are actively looking for solutions that
deliver a more effective means of interacting with the capital markets. As
such, we continue to dedicate significant resources towards both organic
initiatives, in particular our growing GIFT program, as well as strategic
acquisitions, to enhance the options and opportunities inherent in our global
offering.'
Lee Shavel, EVP and CFO, NASDAQ OMX said:
'We have realigned our business to better serve our customers and our revised
business segments are intended to improve the transparency of our business
model for investors. We have combined our Corporate Solutions and Market
Technologies businesses to highlight the combined scale of our financial
software businesses which will be further enhanced by the acquisition of the
Thomson Reuters Corporate Services Business. Similarly, we have combined our
Market Data and Index businesses to emphasize the strength of our information
services businesses. The revenue and operating profit disclosures for these
segments will facilitate comparisons to companies with similar revenue and
profitability dynamics.'
Mr. Shavel continued, 'While we have delivered substantial value to
shareholders through our share repurchases and dividends, we will be focused in
the near-term on reducing the leverage associated with our recently announced
acquisitions of Thomson Reuters Corporate Services and eSpeed. Utilizing our
strong and consistent cash flow, we believe NASDAQ OMX will return to
pre-transaction leverage ratios within a year from closing these transactions.
We remain focused on delivering on the objectives we set for the eSpeed and the
Thomson Reuters Corporate Services businesses and believe they represent
significant strategic and financial opportunities for our shareholders.'
At March 31, 2013, the company had cash and cash equivalents of $591 million
and total debt of $1,966 million, resulting in net debt of $1,375 million.
This compares to net debt of $1,479 million at December 31, 2012. During the
first quarter of 2013, the company repurchased 0.3 million shares of
outstanding common stock under a share repurchase program, for a total of $10
million. Since January 2010, NASDAQ OMX has repurchased $1,182 million of
outstanding common stock, representing 53.7 million shares at an average price
of $22.03.
BUSINESS HIGHLIGHTS
Market Services (43% of total net exchange revenues) - Net exchange revenues
were $182 million in the first quarter of 2013, down $8 million when compared
to the first quarter of 2012.
Cash Equities (11% of total net exchange revenues) - Total net cash equity
trading revenues were $45 million in the first quarter of 2013, down $8 million
compared to the first quarter of 2012. The decline was due to lower industry
volumes, both in the U.S. and in Europe, as well as lower market share, in
particular in the U.S.
Derivatives (17% of total net exchange revenues) - Total net derivative trading
and clearing revenues were $74 million in the first quarter of 2013, down $1
million compared to the first quarter of 2012. Net U.S. derivative trading and
clearing revenues increased 5% year-over-year due to market share gains and
positive revenue capture per traded contract. European derivative trading and
clearing revenues declined $3 million on lower rate per contract in equity
derivatives due to pricing incentives aimed at capturing OTC volume and lower
fixed income volumes, partially offset by higher commodity revenues and a
favorable impact from foreign exchange of $1 million.
Access and Broker Services (15% of total net exchange revenues) - Access and
broker services revenues totaled $63 million in the first quarter of 2013, up
$1 million compared to the first quarter of 2012. The increase was primarily
driven by the uptake of new products including 40G connectivity.
Information Services (26% of total net exchange revenues) - Revenues were $108
million in the first quarter of 2013, up $6 million from the first quarter of
2012.
Market Data (22% of total net exchange revenues) - Total market data revenues
were $91 million in the first quarter of 2013, up $4 million from the first
quarter of 2012. U.S. market data products contributed the largest part of the
increase, as a result of increased sales of proprietary products like Totalview
and NASDAQ Basic, price increases to Level 2 products, and higher audit
collections, partially offset by lower net U.S. tape plan revenues. Index data
products also grew, while European market data products were flat.
Index Licensing and Services (4% of total net exchange revenues) - Index
licensing and services revenues were $17 million in the first quarter of 2013,
up $2 million from the first quarter of 2012. The revenue increase was split
between growth in the value of assets in licensed products and from the
acquisition of the index business of Mergent Inc., including Indxis.
Technology Solutions (18% of total net exchange revenues) - Revenues were $73
million in the first quarter of 2013, up $7 million from the first quarter of
2012.
Corporate Solutions (6% of total net exchange revenues) - Total corporate
solutions revenues were $24 million in the first quarter of 2013, up $3 million
from the first quarter of 2012. Corporate solutions revenues growth was
primarily due to strong performance in Shareholder.com, GlobeNewswire, and
Directors Desk products.
Market Technology (12% of total net exchange revenues) - Market technology
revenues were $49 million in the first quarter of 2013, up $4 million from the
first quarter of 2012. The revenue increase is primarily due to revenues from
BWise, which we acquired in the second quarter of 2012. Order intake in the
first quarter of 2013 decreased, from $55 million in the first quarter of 2012
to $19 million in the first quarter of 2013, as several customer purchasing
decisions were delayed. The order backlog remains higher year-over-year.
Listing Services (13% of total net exchange revenues) - Revenues were $55
million in the first quarter of 2013, down $1 million compared to the first
quarter of 2012. The decrease was driven by a decrease in U.S. listing
revenues, driven by lower initial listing fees, partially offset by an increase
in European listing revenues.
COST GUIDANCE - For the full year of 2013, core operating expenses are expected
to be in the range of $910 million to $930 million, with an additional $50
million to $60 million in incremental new initiative spending, and $12 million
related to a 2013 accounting reclassification of certain Corporate Solutions
expenses that were previously netted in revenue, resulting in total operating
expenses in the range of $972 million to $1,002 million. This guidance excludes
expenses related to our previously announced cost reduction plan, expenses for
the voluntary accommodation program, the SEC matter, special legal expenses,
and the expenses associated with the announced acquisitions of eSpeed and the
IR, PR, and Multimedia Solutions businesses from Thomson Reuters.
CORPORATE HIGHLIGHTS
-- Agreement to acquire eSpeed. On April 1, 2013, NASDAQ OMX announced an
agreement with BGC Partners, Inc., to acquire the eSpeed platform for
trading U.S. Treasuries. Following the closing of the transaction, which is
subject to regulatory approval, NASDAQ OMX intends to leverage its strong
technology experience and leading distribution capabilities to further
develop eSpeed's leading marketplace, while enjoying the structural
tailwinds of a growing U.S. Treasury market.
-- Joint venture with SharesPost announced to form NASDAQ Private Market.
NASDAQ OMX and SharesPost announced a NASDAQ OMX majority owned joint
venture that will establish the preeminent marketplace for private growth
companies. The NASDAQ Private Market (NPM) will provide improved access to
liquidity for early investors, founders, and employees, while enabling the
efficient buying and selling of private company shares. NPM is expected to
launch later in 2013, pending regulatory approvals.
-- Combination of Market Technology and Corporate Solutions businesses. NASDAQ
OMX combined the Market Technology and Corporate Solutions businesses,
which are now included under the Technology Solutions segment and are led
by Anna Ewing, Executive Vice President, Technology Solutions. The
combination enables increased customer focus, growth across the company's
technology businesses and a dedicated software and technology management
structure.
-- Combination of Data Products and Index Group businesses. NASDAQ OMX
combined the Data Products and Index Group businesses, which are now
included under the Global Information Services segment and are led by John
Jacobs, Executive Vice President, Global Information Services. The
combination enables greater customer focus and leverage of NASDAQ OMX's
scalable technology, product innovation and robust distribution channels.
About NASDAQ OMX Group
The inventor of the electronic exchange, The NASDAQ OMX Group, Inc., fuels
economies and provides transformative technologies for the entire lifecycle of
a trade - from risk management to trade to surveillance to clearing. In the
U.S. and Europe, we own and operate 23 markets, 3 clearinghouses and 5 central
securities depositories supporting equities, options, fixed income,
derivatives, commodities, futures and structured products. Able to process more
than 1 million messages per second at sub-40 microsecond speeds with 99.99+%
uptime, our technology drives more than 70 marketplaces in 50 developed and
emerging countries into the future, powering 1 in 10 of the world's securities
transactions. Our award-winning data products and worldwide indexes are the
benchmarks in the financial industry. Home to over 3,300 listed companies worth
more than $6 trillion in market cap whose innovations shape our world, we give
the ideas of tomorrow access to capital today. Welcome to where the world takes
a big leap forward, daily. Welcome to the NASDAQ OMX Century. To learn more,
visit www.nasdaqomx.com. Follow us on Facebook (www.facebook.com/NASDAQ) and
Twitter (www.twitter.com/nasdaqomx). (Symbol: NDAQ and member of S&P 500)
Non-GAAP Information
In addition to disclosing results determined in accordance with GAAP, NASDAQ
OMX also discloses certain non-GAAP results of operations, including, but not
limited to, net income attributable to NASDAQ OMX, diluted earnings per share,
net exchange revenues, operating income, and operating expenses, that make
certain adjustments or exclude certain charges and gains that are described in
the reconciliation table of GAAP to non-GAAP information provided at the end of
this release. Management believes that this non-GAAP information provides
investors with additional information to assess NASDAQ OMX's operating
performance by making certain adjustments or excluding costs or gains and
assists investors in comparing our operating performance to prior periods.
Management uses this non-GAAP information, along with GAAP information, in
evaluating its historical operating performance.
The non-GAAP information is not prepared in accordance with GAAP and may not be
comparable to non-GAAP information used by other companies. The non-GAAP
information should not be viewed as a substitute for, or superior to, other
data prepared in accordance with GAAP.
Cautionary Note Regarding Forward-Looking Statements
Information set forth in this communication contains forward-looking statements
that involve a number of risks and uncertainties. NASDAQ OMX cautions readers
that any forward-looking information is not a guarantee of future performance
and that actual results could differ materially from those contained in the
forward-looking information. Such forward-looking statements include, but are
not limited to (i) projections about our future financial results, growth,
trading volumes, taxes and achievement of synergy targets, (ii) statements
about the closing or implementation dates and benefits of certain strategic and
capital return initiatives, (iii) statements about our integrations of our
recent acquisitions and (iv) other statements that are not historical facts.
Forward-looking statements involve a number of risks, uncertainties or other
factors beyond NASDAQ OMX's control. These factors include, but are not limited
to, NASDAQ OMX's ability to implement its strategic initiatives, economic,
political and market conditions and fluctuations, government and industry
regulation, interest rate risk, U.S. and global competition, and other factors
detailed in NASDAQ OMX's filings with the U.S. Securities and Exchange
Commission, including its annual reports on Form 10-K and quarterly reports on
Form 10-Q which are available on NASDAQ OMX's website at
http://www.nasdaqomx.com and the SEC's website at www.sec.gov. NASDAQ OMX
undertakes no obligation to publicly update any forward-looking statement,
whether as a result of new information, future events or otherwise.
NDAQF
The NASDAQ OMX Group, Inc.
Condensed Consolidated Statements of Income
(in millions, except per share amounts)
(unaudited)
Three Months Ended
-------------------------
March December March
31, 31, 31,
2013 2012 2012
-------------------------
Revenues:
Market Services $ 508 $ 520 $ 580
Cost of revenues:
Transaction rebates (242) (249) (306)
Brokerage, clearance and exchange fees (84) (84) (84)
-------------------------
Total cost of revenues (326) (333) (390)
-------------------------
Total Market Services revenues less transaction 182 187 190
rebates, brokerage, clearance and exchange fees
Listing Services 55 57 56
Information Services 108 99 102
Technology Solutions 73 79 66
-------------------------
Revenues less transaction rebates, brokerage, 418 422 414
clearance and exchange fees
-------------------------
Operating Expenses:
Compensation and benefits 117 116 112
Marketing and advertising 7 7 6
Depreciation and amortization 27 27 26
Professional and contract services 29 29 25
Computer operations and data communications 15 10 17
Occupancy 22 25 23
Regulatory 7 7 9
Merger and strategic initiatives 8 4 2
Restructuring and other charges 9 8 9
General, administrative and other 25 14 14
Voluntary accommodation program 62 -- --
-------------------------
Total operating expenses 328 247 243
-------------------------
Operating income 90 175 171
Interest income 3 3 2
Interest expense (24) (25) (24)
Asset impairment charges (10) -- (12)
-------------------------
Income before income taxes 59 153 137
Income tax provision 17 69 53
-------------------------
Net income 42 84 84
Net loss attributable to noncontrolling interests -- 1 1
-------------------------
Net income attributable to NASDAQ OMX $ 42 $ 85 $ 85
=========================
Basic and diluted earnings per share:
Basic earnings per share $ 0.26 $ 0.52 $ 0.49
=========================
Diluted earnings per share $ 0.25 $ 0.50 $ 0.48
=========================
Cash dividends declared per common share $ 0.13 $ 0.13 $ --
=========================
Weighted-average common shares outstanding for
earnings per share:
Basic 165.7 164.5 173.0
Diluted 169.7 169.1 177.5
The NASDAQ OMX Group, Inc.
Revenue Detail
(in millions)
(unaudited)
Three Months Ended
-------------------------
March December March
31, 31, 31,
2013 2012 2012
-------------------------
MARKET SERVICES
Cash Equity Trading Revenues:
U.S. cash equity trading $ 276 $ 283 $ 340
Cost of revenues:
Transaction rebates (180) (180) (235)
Brokerage, clearance and exchange fees (73) (74) (75)
-------------------------
Total U.S. cash equity cost of revenues (253) (254) (310)
-------------------------
Net U.S. cash equity trading revenues 23 29 30
European cash equity trading 22 18 23
-------------------------
Total net cash equity trading revenues 45 47 53
-------------------------
Derivative Trading and Clearing Revenues:
U.S. derivative trading and clearing 117 124 122
Cost of revenues:
Transaction rebates (62) (69) (71)
Brokerage, clearance and exchange fees (11) (10) (9)
-------------------------
Total U.S. derivative trading and clearing cost of (73) (79) (80)
revenues
-------------------------
Net U.S. derivative trading and clearing revenues 44 45 42
European derivative trading and clearing revenues 30 30 33
-------------------------
Total net derivative trading and clearing revenues 74 75 75
Access and Broker Services Revenues 63 65 62
-------------------------
Total Market Services revenues less transaction 182 187 190
rebates, brokerage, clearance and exchange fees
-------------------------
LISTING SERVICES
U.S. listing services 42 44 44
European listing services 13 13 12
-------------------------
Total Listing Services revenues 55 57 56
-------------------------
INFORMATION SERVICES
Market Data Revenues:
U.S. market data products 63 60 60
European market data products 21 17 21
Index data products 7 6 6
-------------------------
Total Market Data revenues 91 83 87
-------------------------
Index Licensing and Services Revenues 17 16 15
-------------------------
Total Information Services revenues 108 99 102
-------------------------
TECHNOLOGY SOLUTIONS
Corporate Solutions Revenues 24 25 21
-------------------------
Market Technology Revenues:
Software license and support 37 36 36
Change request and advisory 6 12 4
Software as a service 6 6 5
-------------------------
Total Market Technology revenues 49 54 45
-------------------------
Total Technology Solutions revenues 73 79 66
-------------------------
Total revenues less transaction rebates, brokerage, $ 418 $ 422 $ 414
clearance and exchange fees
-------------------------
The NASDAQ OMX Group, Inc.
Consolidated Balance Sheets
(in millions)
March 31, December 31,
2013 2012
--------------------------
Assets (unaudited)
Current assets:
Cash and cash equivalents $ 591 $ 497
Restricted cash 83 85
Financial investments, at fair value 218 223
Receivables, net 317 333
Deferred tax assets 46 33
Default funds and margin deposits 229 209
Other current assets 124 112
--------------------------
Total current assets 1,608 1,492
Non-current restricted cash 25 25
Property and equipment, net 215 211
Non-current deferred tax assets 291 294
Goodwill 5,309 5,335
Intangible assets, net 1,619 1,650
Other non-current assets 121 125
--------------------------
Total assets $ 9,188 $ 9,132
==========================
Liabilities
Current liabilities:
Accounts payable and accrued expenses $ 217 $ 172
Section 31 fees payable to SEC 71 97
Accrued personnel costs 59 111
Deferred revenue 250 139
Other current liabilities 116 119
Deferred tax liabilities 35 35
Default funds and margin deposits 229 209
Current portion of debt obligations 137 136
--------------------------
Total current liabilities 1,114 1,018
Debt obligations 1,829 1,840
Non-current deferred tax liabilities 702 713
Non-current deferred revenue 148 156
Other non-current liabilities 192 196
--------------------------
Total liabilities 3,985 3,923
Commitments and contingencies
Equity
NASDAQ OMX stockholders' equity:
Common stock 2 2
Additional paid-in capital 3,776 3,771
Common stock in treasury, at cost (1,059) (1,058)
Accumulated other comprehensive loss (218) (185)
Retained earnings 2,699 2,678
--------------------------
Total NASDAQ OMX stockholders' equity 5,200 5,208
Noncontrolling interests 3 1
--------------------------
Total equity 5,203 5,209
--------------------------
Total liabilities and equity $ 9,188 $ 9,132
--------------------------
The NASDAQ OMX Group, Inc.
Reconciliation of GAAP Net Income, Diluted Earnings Per Share, Operating Income,
and Operating Expenses
to Non-GAAP Net Income, Diluted Earnings Per Share, Operating Income, and
Operating Expenses
(in millions, except per share amounts)
(unaudited)
Three Months Ended
-------------------------
March December March
31, 31, 31,
2013 2012 2012
-------------------------
GAAP net income attributable to NASDAQ OMX: $ 42 $ 85 $ 85
Non-GAAP adjustments:
Voluntary accommodation program 62 -- --
Reserve for Securities and Exchange Commission matter 10 -- --
Merger and strategic initiatives 8 4 2
Restructuring charges 9 8 9
Asset impairment charges 10 -- 12
Special legal expenses 2 2 --
Sublease reserve -- 3 --
Value added tax refund -- (7) --
Other -- 1 --
-------------------------
Total non-GAAP adjustments 101 11 23
Adjustment to the income tax provision to reflect (35) (5) (3)
non-GAAP adjustments(1)
Significant tax adjustments, net -- 17 3
-------------------------
Total non-GAAP adjustments, net of tax 66 23 23
Non-GAAP net income attributable to NASDAQ OMX: $ 108 $ 108 $ 108
=========================
GAAP diluted earnings per share: $ 0.25 $ 0.50 $ 0.48
Total adjustments from non-GAAP net income above 0.39 0.14 0.13
-------------------------
Non-GAAP diluted earnings per share: $ 0.64 $ 0.64 $ 0.61
=========================
Three Months Ended
-------------------------
March December March
31, 31, 31,
2013 2012 2012
-------------------------
GAAP operating income: $ 90 $ 175 $ 171
Non-GAAP adjustments:
Voluntary accommodation program 62 -- --
Reserve for Securities and Exchange Commission matter 10 -- --
Merger and strategic initiatives 8 4 2
Restructuring charges 9 8 9
Special legal expenses 2 2 --
Sublease reserve -- 3 --
Value added tax refund -- (7) --
Other -- 1 --
-------------------------
Total non-GAAP adjustments 91 11 11
-------------------------
Non-GAAP operating income $ 181 $ 186 $ 182
=========================
Total Non-GAAP revenues less transaction rebates, $ 418 $ 422 $ 414
brokerage, clearance and exchange fees
Non-GAAP operating margin (2) 43% 44% 44%
(1) We determine the tax effect of each item based on the tax rules in the
respective jurisdiction where the transaction occurred.
(2) Non-GAAP operating margin equals non-GAAP operating income divided by
Non-GAAP revenues less transaction rebates, brokerage, clearance and exchange
fees.
The NASDAQ OMX Group, Inc.
Reconciliation of GAAP Net Income, Diluted Earnings Per Share, Operating Income,
and Operating Expenses
to Non-GAAP Net Income, Diluted Earnings Per Share, Operating Income, and
Operating Expenses
(in millions)
(unaudited)
Three Months Ended
--------------------------------
March December March
31, 31, 31,
2013 2012 2012
--------------------------------
GAAP operating expenses: $ 328 $ 247 $ 243
Non-GAAP adjustments:
Voluntary accommodation program (62) -- --
Reserve for Securities and Exchange Commission (10) -- --
matter
Merger and strategic initiatives (8) (4) (2)
Restructuring charges (9) (8) (9)
Special legal expenses (2) (2) --
Sublease reserve -- (3) --
Value added tax refund -- 7 --
Other -- (1) --
--------------------------------
Total non-GAAP adjustments (91) (11) (11)
--------------------------------
Non-GAAP operating expenses $ 237 $ 236 $ 232
================================
The NASDAQ OMX Group, Inc.
Reconciliation of GAAP Net Income, Diluted Earnings Per Share, Operating Income,
Net Exchange Revenues(1) and Operating Expenses
to Non-GAAP Net Income, Diluted Earnings Per Share, Operating Income, Net
Exchange Revenues(1) and Operating Expenses
(in millions)
(unaudited)
Three Months Ended Year Ended
----------------------------------------------------------
March June Septem Decemb Decembe Decembe Decembe
31, 30, ber er 31, r 31, r 31, r 31,
30,
2012 2012 2012 2012 2012 2011 2010
----------------------------------------------------------
GAAP revenues less $ 414 $ 427 $ 412 $ 422 $ 1,674 $ 1,690 $ 1,522
transaction rebates,
brokerage, clearance
and exchange fees:
Non-GAAP adjustments:
Income from open -- (11) -- -- (11) --
positions relating
to the operations
of the Exchange
----------------------------------------------------------
Total non-GAAP -- (11) -- -- (11) -- --
adjustments
----------------------------------------------------------
Non-GAAP revenues $ 414 $ 416 $ 412 $ 422 $ 1,663 $ 1,690 $ 1,522
less transaction
rebates, brokerage,
clearance and
exchange fees:
==========================================================
Three Months Ended Year Ended
----------------------------------------------------------
March June Septem Decemb Decembe Decembe Decembe
31, 30, ber er 31, r 31, r 31, r 31,
30,
2012 2012 2012 2012 2012 2011 2010
----------------------------------------------------------
GAAP operating $ 243 $ 252 $ 242 $ 247 $ 984 $ 994 $ 891
expenses:
Non-GAAP adjustments:
Merger and strategic (2) (1) 3 (4) (4) (38) (4)
initiatives
Restructuring (9) (17) (10) (8) (44) -- --
charges
Extinguishment of -- -- -- -- -- (31) (40)
debt
Special legal -- -- (4) (2) (7) -- --
expenses
Sublease reserve -- -- -- (3) (3) -- (5)
Value added tax -- -- -- 7 7 -- --
refund
Asset retirements -- -- -- -- -- -- (2)
Workforce reductions -- -- -- -- -- -- (9)
Other -- (2) -- (1) (4) (4) (5)
----------------------------------------------------------
Total non-GAAP (11) (20) (11) (11) (55) (73) (65)
adjustments
----------------------------------------------------------
Non-GAAP operating $ 232 $ 232 $ 231 $ 236 $ 929 $ 921 $ 826
expenses
==========================================================
(1) Represents revenues less transaction rebates, brokerage, clearance and
exchange fees.
The NASDAQ OMX Group, Inc.
Quarterly Key Drivers Detail
(unaudited)
Three Months Ended
----------------------------
March December March
31, 31, 31,
2013 2012 2012
----------------------------
Market Services
Cash Equity Trading
NASDAQ securities
Total average daily share volume (in billions) 1.82 1.74 1.80
Matched market share executed on NASDAQ 23.1% 23.6% 26.3%
Matched market share executed on NASDAQ OMX BX 2.5% 2.6% 2.6%
Matched market share executed on NASDAQ OMX PSX 0.9% 1.3% 1.3%
Market share reported to the FINRA/NASDAQ
Trade Reporting Facility 35.7% 33.2% 33.2%
----------------------------
Total market share (1) 62.2% 60.6% 63.4%
New York Stock Exchange, or NYSE securities
Total average daily share volume (in billions) 3.56 3.39 3.91
Matched market share executed on NASDAQ 11.6% 11.5% 13.4%
Matched market share executed on NASDAQ OMX BX 2.4% 2.5% 2.5%
Matched market share executed on NASDAQ OMX PSX 0.5% 0.7% 0.7%
Market share reported to the FINRA/NASDAQ
Trade Reporting Facility 32.7% 30.0% 31.5%
----------------------------
Total market share (1) 47.2% 44.7% 48.2%
NYSE MKT and regional securities
Total average daily share volume (in billions) 0.99 0.97 1.12
Matched market share executed on NASDAQ 13.1% 14.1% 19.0%
Matched market share executed on NASDAQ OMX BX 2.8% 2.9% 2.3%
Matched market share executed on NASDAQ OMX PSX 1.4% 1.6% 1.9%
Market share reported to the FINRA/NASDAQ
Trade Reporting Facility 33.1% 30.6% 29.4%
----------------------------
Total market share (1) 50.3% 49.3% 52.6%
Total U.S.-listed securities
Total average daily share volume (in billions) 6.38 6.09 6.83
Matched share volume (in billions) 70.3 71.6 90.1
Matched market share executed on NASDAQ 15.1% 15.4% 17.7%
Matched market share executed on NASDAQ OMX BX 2.5% 2.6% 2.5%
Matched market share executed on NASDAQ OMX PSX 0.8% 1.0% 1.1%
----------------------------
Total market share 18.4% 19.0% 21.3%
NASDAQ OMX Nordic and NASDAQ OMX Baltic Securities
Average daily number of equity trades 317,069 273,330 372,081
Total average daily value of shares traded (in $ 4.4 $ 3.4 $ 4.6
billions)
Total market share 68.8% 68.2% 70.0%
Derivative Trading and Clearing
U.S. Equity Options
Total industry average daily volume (in millions) 15.0 14.3 15.9
NASDAQ OMX PHLX matched market share 20.7% 21.9% 22.2%
The NASDAQ Options Market matched market share 7.9% 6.2% 5.2%
NASDAQ OMX BX Options matched market share 1.0% 1.0% --
----------------------------
Total market share 29.6% 29.1% 27.4%
NASDAQ OMX Nordic and NASDAQ OMX Baltic
Average daily volume:
Options, futures and fixed-income contracts 446,789 379,905 470,216
Finnish option contracts traded on Eurex 144,905 107,373 71,411
NASDAQ OMX Commodities
Power contracts cleared (TWh)(2) 460 453 521
Listing Services
Initial public offerings
NASDAQ 18 19 21
Exchanges that comprise NASDAQ OMX Nordic and -- 4 1
NASDAQ OMX Baltic
New listings
NASDAQ (3) 33 46 43
Exchanges that comprise NASDAQ OMX Nordic and 4 9 3
NASDAQ OMX Baltic (4)
Number of listed companies
NASDAQ (5) 2,568 2,577 2,665
Exchanges that comprise NASDAQ OMX Nordic and 752 754 769
NASDAQ OMX Baltic (6)
Technology Solutions
Order intake (in millions)(7) $ 19 $ 95 $ 55
Total order value (in millions)(8) $ 524 $ 546 $ 496
(1) Includes transactions executed on NASDAQ's, NASDAQ OMX BX's and NASDAQ OMX
PSX's systems plus trades reported through the FINRA/NASDAQ Trade Reporting
Facility.
(2) Primarily transactions executed on Nord Pool ASA and reported for clearing
to NASDAQ OMX Commodities measured by Terawatt hours (TWh) .
(3) New listings include IPOs, including those completed on a best efforts
basis, issuers that switched from other listing venues, closed-end funds and
separately listed ETFs.
(4) New listings include IPOs and represent companies listed on the exchanges
that comprise NASDAQ OMX Nordic and NASDAQ OMX Baltic and companies on the
alternative markets of NASDAQ OMX First North.
(5) Number of listed companies for NASDAQ at period end, including separately
listed ETFs.
(6) Represents companies listed on the exchanges that comprise NASDAQ OMX Nordic
and NASDAQ OMX Baltic and companies on the alternative markets of NASDAQ OMX
First North at period end.
(7) Total contract value of orders signed during the period.
(8) Represents total contract value of orders signed that are yet to be
recognized as revenue.
The NASDAQ OMX Group, Inc.
Condensed Consolidated Statements of Income
(in millions, except per share amounts)
Three Months Ended Year Ended
----------------------------------------------------------
March June Septem Decemb Decembe Decembe Decembe
31, 30, ber er 31, r 31, r 31, r 31,
30,
2012 2012 2012 2012 2012 2011 2010
----------------------------------------------------------
Revenues: (unaud (unaud (unaud (unaud
ited) ited) ited) ited)
Market Services $ 580 $ 587 $ 519 $ 520 $ 2,206 $ 2,553 $ 2,387
Cost of revenues:
Transaction rebates (306) (299) (250) (249) (1,104) (1,344) (1,312)
Brokerage, clearance (84) (89) (84) (84) (342) (404) (363)
and exchange fees
----------------------------------------------------------
Total cost of (390) (388) (334) (333) (1,446) (1,748) (1,675)
revenues
----------------------------------------------------------
Total Market Services 190 199 185 187 760 805 712
revenues less
transaction rebates,
brokerage, clearance
and exchange fees
Listing Services 56 55 55 57 224 236 229
Information Services 102 106 99 99 406 391 365
Technology Solutions 66 67 73 79 284 258 215
Other -- -- -- -- -- -- 1
----------------------------------------------------------
Revenues less 414 427 412 422 1,674 1,690 1,522
transaction rebates,
brokerage,
clearance and
exchange fees
----------------------------------------------------------
Operating Expenses:
Compensation and 112 113 113 116 454 458 412
benefits
Marketing and 6 6 6 7 26 24 20
advertising
Depreciation and 26 25 26 27 104 109 103
amortization
Professional and 25 26 27 29 107 91 78
contract services
Computer operations 17 17 18 10 60 65 58
and data
communications
Occupancy 23 23 22 25 93 91 88
Regulatory 9 9 8 7 34 35 35
Merger and strategic 2 1 (3) 4 4 38 4
initiatives
Restructuring and 9 17 10 8 44 -- --
other charges
General, 14 15 15 14 58 83 93
administrative and
other
----------------------------------------------------------
Total operating 243 252 242 247 984 994 891
expenses
Operating income 171 175 170 175 690 696 631
Interest income 2 2 2 3 10 11 9
Interest expense (24) (24) (24) (25) (97) (119) (102)
Asset impairment (12) (28) -- -- (40) (18) --
charges
Loss on divestiture -- -- (14) -- (14) -- (11)
of business
Income (loss) from -- -- -- -- (1) 2 2
unconsolidated
investees
Dividend and -- -- -- -- -- 1 (3)
investment income
----------------------------------------------------------
Income before income 137 125 134 153 548 573 526
taxes
Income tax provision 53 33 45 69 199 190 137
----------------------------------------------------------
Net income $ 84 $ 92 $ 89 $ 84 $ 349 $ 383 $ 389
==========================================================
Net loss attributable 1 1 -- 1 3 4 6
to noncontrolling
interests
----------------------------------------------------------
Net income $ 85 $ 93 $ 89 $ 85 $ 352 $ 387 $ 395
attributable to
NASDAQ OMX
==========================================================
Basic and diluted
earnings per share:
Basic earnings per $ 0.49 $ 0.55 $ 0.53 $ 0.52 $ 2.09 $ 2.20 $ 1.94
share
==========================================================
Diluted earnings per $ 0.48 $ 0.53 $ 0.52 $ 0.50 $ 2.04 $ 2.15 $ 1.91
share
==========================================================
Cash dividends $ -- $ 0.13 $ 0.13 $ 0.13 $ 0.39 $ -- $ --
declared per common
share
==========================================================
Weighted-average
common shares
outstanding for
earnings per share:
Basic 173.0 169.4 166.2 164.5 168.3 176.3 203.0
Diluted 177.5 173.4 170.5 169.1 172.6 180.0 207.0
The NASDAQ OMX Group, Inc.
Revenue Detail
(in millions)
Three Months Ended Year Ended
----------------------------------------------------------
March June Septem Decemb Decembe Decembe Decembe
31, 30, ber er 31, r 31, r 31, r 31,
30,
2012 2012 2012 2012 2012 2011 2010
----------------------------------------------------------
MARKET SERVICES (unaud (unaud (unaud (unaud
ited) ited) ited) ited)
Cash Equity Trading
Revenues:
U.S. cash equity $ 340 $ 373 $ 297 $ 283 $ 1,294 $ 1,617 $ 1,600
trading
Cost of revenues:
Transaction (235) (246) (193) (180) (854) (1,087) (1,094)
rebates
Brokerage, (75) (83) (75) (74) (308) (375) (341)
clearance and
exchange fees
----------------------------------------------------------
Total U.S. cash (310) (329) (268) (254) (1,162) (1,462) (1,435)
equity cost of
revenues
----------------------------------------------------------
Net U.S. cash 30 44 29 29 132 155 165
equity trading
revenues
European cash equity 23 19 18 18 80 95 90
trading
----------------------------------------------------------
Total net cash 53 63 47 47 212 250 255
equity trading
revenues
----------------------------------------------------------
Derivative Trading and
Clearing Revenues:
U.S. derivative 122 103 110 124 458 471 390
trading and
clearing
Cost of revenues:
Transaction (71) (53) (57) (69) (250) (257) (218)
rebates
Brokerage, (9) (6) (9) (10) (34) (29) (22)
clearance and
exchange fees
----------------------------------------------------------
Total U.S. (80) (59) (66) (79) (284) (286) (240)
derivative
trading and
clearing cost of
revenues
----------------------------------------------------------
Net U.S. 42 44 44 45 174 185 150
derivative
trading and
clearing revenues
European derivative 33 26 28 30 117 128 115
trading and
clearing revenues
----------------------------------------------------------
Total net 75 70 72 75 291 313 265
derivative trading
and clearing
revenues
Access and Broker 62 66 66 65 257 242 188
Services Revenues
----------------------------------------------------------
Other Market -- -- -- -- -- -- 4
Services Revenues
----------------------------------------------------------
Total Market 190 199 185 187 760 805 712
Services revenues
less transaction
rebates, brokerage,
clearance and
exchange fees
----------------------------------------------------------
LISTING SERVICES
U.S. listing 44 43 43 44 174 181 178
services
European listing 12 12 12 13 50 55 51
services
----------------------------------------------------------
Total Listing 56 55 55 57 224 236 229
Services revenues
----------------------------------------------------------
INFORMATION SERVICES
Market Data
Revenues:
U.S. market data 60 63 61 60 244 229 225
products
European market data 21 20 17 17 74 80 69
products
Index data products 6 7 6 6 25 24 19
----------------------------------------------------------
Total Market Data 87 90 84 83 343 333 313
revenues
----------------------------------------------------------
Index Licensing and 15 16 15 16 63 58 52
Services Revenues
----------------------------------------------------------
Total Information 102 106 99 99 406 391 365
Services revenues
----------------------------------------------------------
TECHNOLOGY SOLUTIONS
Corporate Solutions 21 22 22 25 89 75 63
Revenues
----------------------------------------------------------
Market Technology
Revenues:
Software license and 36 35 36 36 143 139 120
support
Change request and 4 6 7 12 29 29 27
advisory
Software as a 5 4 8 6 23 15 5
service
----------------------------------------------------------
Total Market 45 45 51 54 195 183 152
Technology
revenues
----------------------------------------------------------
Total Technology 66 67 73 79 284 258 215
Solutions revenues
----------------------------------------------------------
Other -- -- -- -- -- -- 1
----------------------------------------------------------
Total revenues less $ 414 $ 427 $ 412 $ 422 $ 1,674 $ 1,690 $ 1,522
transaction rebates,
brokerage, clearance
and exchange fees
----------------------------------------------------------
CONTACT: Media Relations:
Joseph Christinat +1.646.441.5121
Joseph.Christinat@NASDAQOMX.Com
Investor Relations:
Ed Ditmire +1.212.401.8737
Ed.Ditmire@NASDAQOMX.Com
News Source: NASDAQ OMX
24.04.2013 Dissemination of a Corporate News, transmitted by DGAP -
a company of EquityStory AG.
The issuer is solely responsible for the content of this announcement.
DGAP's Distribution Services include Regulatory Announcements,
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Media archive at www.dgap-medientreff.de and www.dgap.de
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Language: English
Company: The NASDAQ OMX Group, Inc.
United States
Phone:
Fax:
E-mail:
Internet:
ISIN: US6311031081
WKN:
End of Announcement DGAP News-Service
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DGAP-News: NASDAQ OMX Reports First Quarter 2013 Results
| Quelle: EQS Group AG