Nasdaq Reports Q1 2015 Financial Results, FX Rates Weigh Negatively

FX rates proved to be the achilles heel for Nasdaq's Q1 financial results, contributing to a -4% YoY decline in

Nasdaq OMX Group, Inc. (Nasdaq:NDAQ) has released its metrics for Q1 2015, which were characterized by waning revenues, according to a Nasdaq statement.

In particular, Nasdaq’s Q1 2015 revenues came in at $507 million, corresponding to a fall of -4% YoY from $529 million in Q1 2014. The primary culprit for this decline was the impact of foreign exchange (FX) rates weighing negatively by $29 million.

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Controlling for the impact of foreign exchange rates and acquisitions, Q1 2015 net revenues were at Nasdaq were unchanged, given the 3% organic growth in the non-trading segments was offset by declines in Market Services, largely due to lower volumes.

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In particular, Nasdaq’s Q1 2015 non-GAAP diluted EPS came in at $0.80, while Q1 2015 GAAP diluted EPS was $0.05. Additionally, the board authorized a 67% increase in the quarterly dividend, to $0.25 per share from $0.15.

Non-GAAP operating expenses yielded $272 million in Q1 2015, down -8% YoY from Q1 2014. On an organic basis, excluding the impact of FX rates, non-GAAP operating expenses fell by -2%.

According to Bob Greifeld, CEO, Nasdaq in a recent statement on the metrics, “Nasdaq has delivered strong results in what remains a challenging and competitive operating environment. The diversity of our business, coupled with a balanced approach to investment and capital return, bolsters confidence in the flexibility of our model to continue to deliver for our clients and our shareholders.”

“We had a tremendous start to 2015 including the acquisition of Dorsey, Wright and Associates, the announcement of a new energy futures platform, continued leadership in IPOs, new market structure initiatives and a range of product introductions across our businesses. We remain focused on executing on the company’s opportunity set by deepening our client relationships through our broad product and service offerings, enhancing our competitive position by efficiently leveraging our technology and increasing the yield on recent investments to enhance returns for our shareholders,” Mr. Greifeld added.

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