Nasdaq quarterly profit beats on record trading volumes
Reuters
Published Jul 22, 2020 07:14AM ET
Updated Jul 22, 2020 08:00AM ET
(Reuters) - Transatlantic exchange operator Nasdaq Inc (O:NDAQ) on Wednesday reported a better-than-expected quarterly profit as more people took to trading from home while under lockdown, with pandemic-driven market volatility also boosting volumes to record levels.
Trading in technology stocks, which were relatively insulated from coronavirus-led business curbs, soared during the quarter as more people under lockdown bought these stocks. Volumes were also boosted by the recent move by retail brokerages to offer commission-free trading.
Nasdaq benefits from trades on its exchange and when assets linked to its indexes rise.
Revenue at Nasdaq's market services unit, which accounted for 40% of total revenue, rose 22% to $276 million. The unit oversees transactions, clearing and settlements.
Nasdaq saw a spate of initial public offerings (IPO) during the quarter, after the pandemic brought new listings to a halt in March. Some of the largest IPOs by size listed on its stock market included Royalty Pharma PLC (O:RPRX), Warner Music Group (O:WMG) and ZoomInfo Technologies (O:ZI).
Since taking over as Nasdaq's chief in 2017, Adena Friedman has expanded its focus beyond traditional exchange functions to higher-growth opportunities in technology and analytics, while offloading less profitable units.
Information services, Nasdaq's biggest non-trading business, saw revenue jump nearly 10% to $213 million.
The company also narrowed its forecast for adjusted operating expenses for 2020 to between $1.33 billion and $1.36 billion, from an earlier range between $1.32 billion and $1.37 billion.
Net income attributable to Nasdaq rose to $241 million, or $1.45 per share, in the second quarter ended June 30, from $174 million, or $1.04 per share, a year earlier.
Excluding one-time items, the company earned $1.54 per share. Analysts expected a profit of $1.45 per share, according to IBES data from Refinitiv.
Revenue, excluding transaction-based expenses, rose 12% to $699 million.
Get The News You Want
Written By: Reuters
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.