Data biz drives Nasdaq OMX Q2 profit rise

Nasdaq OMX posted a small second quarter net income rise as strong market data revenues helped to offset weak trading volumes.

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Data biz drives Nasdaq OMX Q2 profit rise

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The exchange operator reported net income of $93 million, or 53 cents a share, up 1.1% on $92 million, or 51 cents a share, for the second quarter of 2011. Adjusting for one off costs, earnings were 64 cents a share. Net revenue was $424 million, up from $415 million.

The figures beat analyst expectations of 60 cents a share after exclusions, according to Thomson Reuters I/B/E/S.

Robert Greifeld, CEO, Nasdaq OMX, says: "This performance was a direct result of our continued focus on cost management, and the execution of our strategy to build strong, recurring and subscription-based revenue businesses that can drive growth, despite the trading environment."

Market data revenues were $90 million compared to $83 million in Q2 2011, an eight per cent rise while the access services business saw an 11% year-on-year rise to $61 million.

This helped to offset revenue falls from cash equities, derivatives, issuer services and market technology, which saw a $2 million dip to $44 million.

The tech unit's reputation took a hit in May when Nasdaq's own systems failed to cope with the high profile Facebook IPO, a fiasco which saw it last week offer $62 million in payouts to affected firms.

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