Nasdaq Sees Q4 2015 Revenues Climb Despite Checkered Market Performance

Nasdaq’s Q4 2015 net revenues came in at $536 million, up 4.0% YoY from $517 million in Q4 2015, despite

Nasdaq (Nasdaq:NDAQ) has reported its Q4 2015 financial results, capping off a mixed year of revenues and other pertinent figures across its global business, according to a Nasdaq statement.

In particular, Nasdaq’s Q4 2015 net revenues came in at $536 million, up 4.0% YoY from $517 million in Q4 2014. By and large this figure was driven by a $37.0 million operational gain across its operations, despite the prevalence of a -$18.0 million negative impact incurred from foreign exchange (FX) rates.

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However, when viewed under the lens of an organic basis (controlling for the material impact of changes in FX rates and acquisitions), Nasdaq’s Q4 2015 net revenues exhibited a slightly more pronounced gain of 5.0% YoY, with non-trading segments seeing a revenue growth of 8.0% YoY from Q4 2014.

In addition, Nasdaq’s Q4 2015 non-GAAP reported a diluted earnings-per-share (EPS) of $0.89, which marks an increase of 10.0% YoY vs Q4 2014. The group also underwent a share repurchase of nearly $67 million of common stock and through a combination of dividend payments and stock buybacks, Nasdaq subsequently returned approximately $526 million in capital to shareholders in 2015.

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Revenues Rundown

Nasdaq also revealed a breakdown of its revenues, each of which seeing a generally mixed performance in Q4 2015 – market services saw 36% of total net revenues, the largest proportion of its business. Across its market services, the revenues were $195 million in Q4 2015, incurring a drop of $6.0 million compared to $201.0 million Q4 2014 or -3.0% YoY. This was due to the weight of FX rates, estimated at over $8.0 million.

Moreover, equity derivatives corresponded to 9.0% of total net revenues – net equity derivative trading and clearing revenues were $48 million in the Q4 2015, falling -$5 million compared to Q4 2014. Finally, the group’s Fixed Income, Currency and Commodities (FICC) represented just 4% of total net revenues in Q4 2015 – net FICC trading and clearing revenues were down $20 million in Q4 2015, down -$9 million from the Q4 2014.

According to Bob Greifeld, Chief Executive Officer (CEO) of Nasdaq, in a recent statement on the metrics: “Over the last several years, we have built a strategic portfolio of businesses that provide a level of resiliency through significant non-transaction revenue streams and scale potential through a strong global trading franchise.”

“In the fourth quarter of 2015, market volatility and macro uncertainty have risen at the same time our non-transaction businesses have produced strong organic growth. These factors combined with our inherent operating leverage and disciplined capital deployment have delivered record results and attractive earnings growth to our shareholders,” he added.

Earlier this month, Nasdaq launched its IR Insight platform, designed to cater specifically to financial executives and senior investing relations officers (IROs) worldwide. The new IR platform was developed as a result of a detailed collaboration with clients from Nasdaq’s corporate finance suite in a bid to create a fully integrated and comprehensive user interface.

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