The Nasdaq Stock Market, Inc. reported second quarter 2007 net income of $US56.1 million, an increase of $US39.5 million from $US16.6 million in the second quarter of 2006.
Operating income was $US99.0 million for the second quarter, an increase of $US62.7 million when compared to $US36.3 million for the second quarter of 2006, and up $US17.6 million, or 21.6% from $US81.4 million reported in the first quarter of 2007.
Revenues, less liquidity rebates, brokerage, clearance and exchange fees (“net exchange revenues”) were $US198.7 million in the second quarter of 2007, an increase of 16.1% from $US171.1 million in the year-ago period, and up 3.4% from $US192.1 million reported in the first quarter of 2007.
For the full-year 2007, the firm expects net income in the range of $US171 million to $US181 million, net exchange revenues in the range of $US775 million to $US790.0 million, and total operating expenses in the range of $US400 million to $US415 million.
“Operating margins for the quarter were 49.8%, demonstrating our ability to deliver synergies from acquisitions while simultaneously introducing innovative customer products and services,” commented Nasdaq’s chief financial officer, David Warren, in a release. “Our focus on operating efficiency is yielding positive results. This focus will continue to drive value for our shareholders as we introduce new services such as our Options and Portal markets, and strive to complete our planned combination with OMX.”
“In the second quarter of 2007 Nasdaq’s core business operated on all cylinders, reaching record operating earnings on the back of new product innovation and customer service initiatives. In addition, we are pleased with the pace of our integration planning efforts with our prospective merger partner OMX and are confident that together we will create the strongest global marketplace and technology platform,” commented Bob Greifeld, president and chief executive officer of Nasdaq.
“Our ability to capture market share has grown Nasdaq into the largest single pool of liquidity for trading cash equities, creating a robust platform for growth. To that end, we believe our business is poised to deliver strong results over the second half of the year through continued product innovation and diversification,” he added.