DGAP-News: NASDAQ OMX Reports Second Quarter 2013 Results
(firmenpresse) - The NASDAQ OMX Group, Inc.
24.07.2013 14:03
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-- Second quarter 2013 non-GAAP diluted EPS of $0.62, second quarter 2013 GAAP
diluted EPS of $0.52.
-- Second quarter 2013 net revenues1 were a record $451 million, up 8% from
the prior year quarter's non-GAAP net revenue. On an organic basis,
assuming constant currency and excluding acquisitions, net revenues
increased 1% year-over-year.
-- All four business segments experienced organic revenue growth
year-over-year.
-- Non-transaction based revenues were 72% of our total second quarter 2013
net revenues, and increased 10% from the prior year quarter.
-- During the second quarter, NASDAQ OMX closed two strategically significant
acquisitions, the Thomson Reuters' IR, PR and Multimedia businesses, and
the eSpeed benchmark Treasury trading platform.
NEW YORK, July 24, 2013 (GLOBE NEWSWIRE) -- The NASDAQ OMX Group, Inc.
(Nasdaq:NDAQ) today reported results for the second quarter of 2013. Second
quarter net revenues were $451 million, up from $416 million in the prior year
period on a non-GAAP basis, driven by acquisitions and organic growth in all
four business segments. On an organic basis second quarter net revenues
increased 1% year-over-year.
'Our strategy is focused on becoming an entrenched provider of corporate,
trading, technology, and information products and services that allow our
customers to more effectively navigate today's global capital markets,' said
Bob Greifeld, CEO, NASDAQ OMX. 'Essential to that strategy has been the
expansion of the depth and breadth of asset classes, products and markets we
offer as well as extending our presence in adjacent businesses that are
relevant to the communities where we operate to facilitate a deepening of our
client relationships.'
Mr. Greifeld continued, 'We took significant strategic steps forward this
quarter - closing on two transformative acquisitions, launching a revolutionary
interest rate market, and delivering record revenues. The acquisitions of
Thomson Reuters' IR, PR, and Multimedia businesses, and eSpeed, establish
NASDAQ OMX as the leader in corporate solutions and a leading force in the
expanding electronic fixed income business. Both are on track to meet or exceed
the targets we've set for delivering value to shareholders. Today, across our
expanded portfolio of businesses, we are now a #1 or #2 player in business
segments that collectively comprise 96% of our revenues. Our position continues
to validate the strategic direction of the organization and relentless focus on
our clients.'
Operating expenses were $292 million in the second quarter of 2013, compared to
$252 million in the prior year quarter. On a non-GAAP basis, second quarter
2013 operating expenses were $267 million, up 15% as compared to the prior year
quarter, primarily due to the inclusion of expenses associated with the
acquisition of Thomson Reuters' IR, PR and Multimedia businesses, as well as
several smaller acquisitions. On an organic basis (constant currency and
excluding acquisitions), second quarter non-GAAP operating expenses were
unchanged year-over-year, a net 1% decline in core expenses offset by higher
internal investment (GIFT) spending.
Second quarter 2013 non-GAAP diluted earnings per share were $0.62, versus
$0.64 in the prior year quarter. Non-GAAPdiluted earnings per share in the
second quarter of 2013 excludes $25 million of pre-tax merger-related expenses,
while non-GAAP diluted earnings per share in the second quarter of 2012
excludes $37 million of net pre-tax charges primarily relating to income from
open positions relating to the operations of the exchange, asset impairment
charges and restructuring charges, and $6 million of significant tax
adjustments.
On a GAAP basis, net income attributable to NASDAQ OMX for the second quarter
of 2013 was $88 million, or $0.52 per diluted share, compared with $93 million,
or $0.53 per diluted share, in the prior year quarter.
'While we are pleased with the broad-based performance across many of our
businesses, we experienced unique variances in our cost structure, including
financing costs of approximately $2.5 million associated with pre-funding the
eSpeed acquisition nearly a month prior to closing, and our organic
investments, where several launches of GIFT initiatives added an additional $5
million to our expenses versus the prior year,' said Lee Shavel, EVP and CFO,
NASDAQ OMX. 'The earnings impact from GIFT initiatives is expected to moderate
over time, either from improved profitability, and/or from reduced investment,
as these initiatives mature.'
Mr. Shavel continued, 'On the capital front, our investment grade ratings were
affirmed and we raised a [Eur]600 million, 8-year Euro bond offering, with an
attractive, 3.9% effective yield. This offering was instrumental in financing
our acquisitions, diversified our funding sources by accessing a new market and
reduced our foreign exchange exposure. We continue to have a near-term focus on
de-leveraging, and we remain confident in our ability to return to an
approximately 2.5x long-term leverage target in the next three to four
quarters, at which point we will have more flexibility to consider capital
return and deployment options.'
At June 30, 2013, the company had cash and cash equivalents of $379 million and
total debt of $2,785 million, resulting in net debt of $2,406 million. This
compares to net debt of $1,479 million at December 31, 2012.
1 Represents revenues less transaction rebates, brokerage, clearance and
exchange fees.
BUSINESS HIGHLIGHTS
Market Services (42% of total net revenues) - Net revenues were $190 million in
the second quarter of 2013, up $2 million when compared to non-GAAP net
revenues of $188 million in the second quarter of 2012, which excludes $11
million in gains related to open positions resulting from operations of the
exchange.
Derivatives (17% of total net revenues) - Total net derivative trading and
clearing revenues were $76 million in the second quarter of 2013, up $6 million
compared to the second quarter of 2012. Net U.S. derivative trading and
clearing revenues increased 9% year-over-year due to higher industry volumes
and market share, partially offset by lower average pricing. European
derivative trading and clearing revenues increased $2 million, primarily due to
higher energy commodity volumes and favorable foreign exchange impact.
Cash Equities (11% of total net revenues) - Total net cash equity trading
revenues were $51 million in the second quarter of 2013, down $1 million
compared to non-GAAP revenues in the second quarter of 2012. Lower net U.S.
equities revenues, primarily due to lower market share, were partially offset
by higher European equities revenue, driven primarily by higher average
pricing, higher volumes and share, and a favorable impact from foreign
exchange.
Access and Broker Services (14% of total net revenues) - Access and broker
services revenues totaled $63 million in the second quarter of 2013, down $3
million compared to the second quarter of 2012. Connectivity and co-location
saw modestly lower demand in the second quarter of 2013 compared to the second
quarter of 2012, but newer products, such as microwave connectivity and
FinQloud, are seeing increased demand.
Information Services (24% of total net revenues) - Revenues were $108 million
in the second quarter of 2013, up $2 million from the second quarter of 2012.
Market Data (20% of total net revenues) - Total market data revenues were $90
million in the second quarter of 2013, flat compared to the second quarter of
2012. The second quarter of 2013 saw a $2 million decrease in audit
collections, offset by growth in products such as NASDAQ Basic, and select
pricing initiatives.
Index Licensing and Services (4% of total net revenues) - Index licensing and
services revenues were $18 million in the second quarter of 2013, up $2 million
from the second quarter of 2012. The revenue growth was a function of
materially higher assets and number of licensed exchange traded products,
including the impact of the acquisition of the index business of Mergent, Inc.
Technology Solutions (21% of total net revenues) - Revenues were $95 million in
the second quarter of 2013, up $28 million from the second quarter of 2012.
Corporate Solutions (10% of total net revenues) - Corporate solutions revenues
were $44 million in the second quarter of 2013, up $22 million from the second
quarter of 2012. Corporate solutions revenue growth was primarily due to the
inclusion of one month of results from the acquisition of the Thomson Reuters'
IR, PR, and Multimedia businesses, as well as organic growth, in particular the
growth of Directors Desk, IR Suite, and PR distribution.
Market Technology (11% of total net revenues) - Market technology revenues were
$51 million in the second quarter of 2013, up $6 million from the second
quarter of 2012. The revenue increase is due to the acquisition of BWise in the
second quarter of 2012, as well as growth in SMARTS Broker and a favorable
impact from foreign exchange. Order intake in the second quarter of 2013
decreased, from $82 million in the second quarter of 2012 to $44 million in the
second quarter of 2013, and a material amount of deliveries reduced the backlog
to $507 million, compared to $538 million in the prior year period.
Listing Services (13% of total net revenues) - Revenues were $58 million in the
second quarter of 2013, up $3 million compared to the second quarter of 2012.
The increase was primarily driven by higher European listing revenues, due to
higher market capitalization, and a higher number of IPOs in the U.S.
COST GUIDANCE - The Thomson Reuters' IR/PR/MM businesses and eSpeed
acquisitions have been incorporated into the expense forecast and are expected
to add between $145 million and $160 million to our 2013 expenses. The company
has also narrowed the core expense guidance excluding acquisitions to between
$925 million and $940 million, bringing core expense guidance with the
acquisitions to between $1,070 million and $1,100 million. New Initiatives or
'GIFT' expense guidance is unchanged at $50 million to $60 million, and total
expenses are now expected to be between $1,120 million and $1,160 million.
CORPORATE HIGHLIGHTS
-- Closed acquisition of IR, PR&Multimedia businesses of Thomson
Reuters. On May 31, 2013, NASDAQ OMX closed the acquisition of the Investor
Relations, Public Relations, and Multimedia businesses of Thomson Reuters,
which are now incorporated into the Corporate Solutions business, where
they are being integrated with NASDAQ OMX's legacy corporate solutions
products.
-- Closed acquisition of eSpeed. On June 28, 2013, NASDAQ OMX closed the
acquisition of the eSpeed platform for trading U.S. Treasuries. NASDAQ OMX
intends to leverage its strong technology experience and leading
distribution capabilities to further develop eSpeed's leading marketplace,
while enjoying the structural tailwinds of a growing U.S. Treasury market.
-- Launched NLX futures exchange. On May 31, 2013, NASDAQ OMX launched NLX, a
new London-based market offering a range of both short-term and long-term
interest rate derivative products, with the support of a wide range of
founding participants including banks, clearing, brokerage and trading
firms.
-- Launched WorkSpace. WorkSpace is a new cloud computing platform that willexpand the company's Corporate Solutions client base and enter the
burgeoning virtual data room (VDR) market. The technology provides a
paperless VDR for secure and effective document sharing typically used for
mergers and acquisitions, pre-IPO due diligence review, bankruptcy and
restructuring, and other applications.
-- Investment-grade debt rating affirmed by S&P and Moody's and successful
Euro-denominated bond offering. After reviewing NASDAQ OMX's debt rating
following the announcement of the eSpeed acquisition, both S&P&Moody's affirmed investment-grade credit ratings. NASDAQ OMX issued and
sold [Eur]600 million aggregate principal amount of bonds with an 8-year tenor
and a 3.9% effective yield, with proceeds used primarily to fund the eSpeed
acquisition.
About NASDAQ OMX Group
The inventor of the electronic exchange, The NASDAQ OMX Group, Inc., fuels
economies and provides transformative technologies for the entire lifecycle of
a trade - from risk management to trade to surveillance to clearing. In the
U.S. and Europe, we own and operate 26 markets, 3 clearinghouses and 5 central
securities depositories supporting equities, options, fixed income,
derivatives, commodities, futures and structured products. Able to process more
than 1 million messages per second at sub-40 microsecond speeds with 99.99%
uptime, our technology drives more than 70 marketplaces in 50 developed and
emerging countries into the future, powering 1 in 10 of the world's securities
transactions. Our award-winning data products and worldwide indexes are the
benchmarks in the financial industry. Home to over 3,300 listed companies worth
$6.9 trillion in market cap whose innovations shape our world, we give the
ideas of tomorrow access to capital today. Welcome to where the world takes a
big leap forward, daily. Welcome to the NASDAQ OMX Century. To learn more,
visit www.nasdaqomx.com. Follow us on Facebook (http://www.facebook.com/NASDAQ)
and Twitter (http://www.twitter.com/nasdaqomx). (Symbol: NDAQ and member of S&P
500)
Non-GAAP Information
In addition to disclosing results determined in accordance with GAAP, NASDAQ
OMX also discloses certain non-GAAP and pro forma non-GAAP results of
operations, including, but not limited to, net income attributable to NASDAQ
OMX, diluted earnings per share, net exchange revenues, operating income, and
operating expenses, that make certain adjustments or exclude certain charges
and gains that are described in the reconciliation table of GAAP to non-GAAP
and pro forma non-GAAP information provided at the end of this release.
Management believes that this non-GAAP and pro forma non-GAAP information
provides investors with additional information to assess NASDAQ OMX's operating
performance by making certain adjustments or excluding costs or gains and
assists investors in comparing our operating performance to prior periods.
Management uses this non-GAAP and pro forma non-GAAP information, along with
GAAP information, in evaluating its historical operating performance.
The non-GAAP information is not prepared in accordance with GAAP and may not be
comparable to non-GAAP information used by other companies. The non-GAAP
information should not be viewed as a substitute for, or superior to, other
data prepared in accordance with GAAP.
Cautionary Note Regarding Forward-Looking Statements
Information set forth in this communication contains forward-looking statements
that involve a number of risks and uncertainties. NASDAQ OMX cautions readers
that any forward-looking information is not a guarantee of future performance
and that actual results could differ materially from those contained in the
forward-looking information. Such forward-looking statements include, but are
not limited to (i) projections about our future financial results, growth,
trading volumes, taxes and achievement of synergy targets, (ii) statements
about the closing or implementation dates and benefits of certain strategic,
de-leveraging and capital return initiatives, (iii) statements about our
integrations of our recent acquisitions and (iv) other statements that are not
historical facts. Forward-looking statements involve a number of risks,
uncertainties or other factors beyond NASDAQ OMX's control. These factors
include, but are not limited to, NASDAQ OMX's ability to implement its
strategic initiatives, economic, political and market conditions and
fluctuations, government and industry regulation, interest rate risk, U.S. and
global competition, and other factors detailed in NASDAQ OMX's filings with the
U.S. Securities and Exchange Commission, including its annual reports on Form
10-K and quarterly reports on Form 10-Q which are available on NASDAQ OMX's
website at http://www.nasdaqomx.com and the SEC's website at www.sec.gov.
NASDAQ OMX undertakes no obligation to publicly update any forward-looking
statement, whether as a result of new information, future events or otherwise.
The financial tables will follow in a separate release shortly.
NDAQF
CONTACT: Contact Media Relations:
Joseph Christinat +1.646.441.5121
Joseph.Christinat(at)NASDAQOMX.Com
Contact Investor Relations:
Ed Ditmire +1.212.401.8737
Ed.Ditmire(at)NASDAQOMX.Com
News Source: NASDAQ OMX
24.07.2013 Dissemination of a Corporate News, transmitted by DGAP -
a company of EQS Group AG.
The issuer is solely responsible for the content of this announcement.
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Language: English
Company: The NASDAQ OMX Group, Inc.
United States
Phone:
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Internet:
ISIN: US6311031081
WKN:
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