Nasdaq, Inc. has published its financial results for the third quarter of 2019 this Wednesday, revealing a positive uptick in net revenues but a drop in net income on an annual comparison.
During the third quarter, net revenues were $632 million. This represents an increase of $32 million or 5.3 percent from the $600 million reported in the prior-year period.
Net revenues are also higher by $9 million on a quarter-on-quarter comparison, as the second quarter of 2019 had net revenues of $623 million. Contributing to Q3’s figure was a 6 percent or a positive $37 million impact from organic growth.
Furthermore, net revenues were also up thanks to a $12 million positive impact from the inclusion of revenues from the acquisitions of Cinnober and Quandl. However, this was partially offset by a $10 million negative impact from a divestiture and a $7 million unfavorable impact from changes in foreign exchange (forex) rates.
Net income for Q3 of 2019, however, didn’t hold up as well, coming in at $150 million on a GAAP basis, or diluted earnings per share of $0.90. This is lower than the $163 million net income posted in the third quarter of 2018 by around 8.0 percent.
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Taking a look at Nasdaq’s market services performance, which contributes 36 percent of total net revenues, the exchange operator noted a figure of $226 million for the period. This is up by $4 million or 2 percent year-on-year.
Fixed income net revenues fall on Nasdaq
The Fixed Income and Commodities Trading and Clearing segment, however, experienced a drop in the third quarter, falling by $3 million down to $16 million. This was primarily driven by lower volumes in US fixed income and European commodities products.
The Equity Derivative Trading and Clearing net revenues, on the other hand, were $75 million in Q3 of 2019. This translated to a growth of $7 million year-on-year, thanks to higher US trading volumes and revenue capture.
Commenting on the results, Adena Friedman, President and CEO, Nasdaq said: “Our strong third quarter 2019 results reflect significant contributions from across our franchise. I am especially pleased that we have been able to continue delivering strong growth in our expanded technology and analytics offerings, while simultaneously benefiting from our rising equities market share and a busy trading and IPO environment.”
“At the same time, we are progressing on significant initiatives, such as the deployment of our next-generation market technology solutions and enhancing our offerings to the private markets, which will enable us to do more for our clients in future periods.”