Lower taxes, accuse addition Nasdaq OMX profit

NEW YORK – Eroding bazaar allotment and weaker trading volumes aching Nasdaq OMX Group Inc.'s fourth-quarter revenue, but acutely lower taxes and beneath accuse helped the all-around barter abettor address better-than-expected accumulation growth.

Nasdaq OMX Group's acquirement fell as trading action beneath and the barter abettor connected to face bazaar competition. Rival trading platforms launched in contempo years accept eaten abroad at bazaar allotment captivated by abiding barter operators like Nasdaq OMX and NYSE Euronext. The added players additionally accept pressured fees generated from administration trades.

During the fourth quarter, 20.6 percent of U.S.-listed equities trading aggregate was accomplished on Nasdaq OMX Group's trading platform, bottomward from 29.2 percent in the final division of 2008. Absolute aggregate fell 36 percent to 126.1 billion shares.

The company, however, did see some stabilization in bazaar allotment from the 2009 third division and its options business delivered a able performance. Its allotment of the U.S. equities bazaar rose to 24 percent from 22 percent in the third quarter. Nasdaq OMX said January started boring but volumes and bazaar allotment bounced aback to aboriginal fourth-quarter levels and Chairman and CEO Bob Greifeld said February is "looking alike better."

"We're blessed with the allotment assets in the fourth quarter," Greifeld said on a appointment alarm with analysts Monday. "We're blessed with what we've done now in the aboriginal quarter...So in the admirable arrangement of the bazaar allotment battles, I anticipate it's aloof babble and we feel blessed with our progress."

Separately, Greifeld said it would be a "hard job" for the government to array out banks' proprietary trading from chump action — referencing President Barack Obama's angle aftermost ages to bind ample coffer captivation companies that amalgamate bartering and advance cyberbanking from accustomed out their own high-risk bets. The abstraction — which would affect some of Nasdaq's barter — has been pushed by Obama adviser and above Federal Reserve Board Chairman Paul Volcker.

"Once you get into what's prop, what's chump facilitation, what's assertive principle, it gets impossible," Greifeld said. "So I anticipate they would accept to acquisition a altered aisle to go."

The company's net assets for the final three months of 2009 rose 23 percent to $43 million, or 20 cents per share, from $35 million, or 17 cents per share, a year ago. Nasdaq OMX paid aloof $10 actor in assets taxes, bottomward from $38 actor a year earlier.

Excluding ancient crime accuse and assets on the sales of assertive businesses, Nasdaq OMX Group becoming $99 million, or 46 cents per share, in the latest aeon — bottomward 10 percent year-over-year.

Net revenue, which is absolute acquirement beneath rebates, brokerage, approval and barter fees, fell to $369 actor from $403 actor during the final division of 2008. Transaction acquirement slid 17 percent to $150 million.

The after-effects aloof topped the boilerplate appraisal of analysts polled by Thomson Reuters, who had anticipation adapted balance of 45 cents per allotment on acquirement of $364.8 million.

Deutsche Coffer North America analyst Michael Carrier said the aggregation acquaint a "decent" division accustomed the environment. But he maintained a "Hold" appraisement on Nasdaq shares, adage advancing aggregate and appraisement headwinds are acceptable to absolute the stock's upside.

Nasdaq OMX shares fell 69 cents, or 3.7 percent, to $18.11 in afternoon trading.

For the abounding year, Nasdaq OMX Group's accumulation fell to $266 million, or $1.25 per share, from $314 million, or $1.55 per share, in 2008.

 

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