The Nasdaq Stock Market Inc. is reporting stronger earnings for the second quarter ended June 30.
The owner of the tech-laden stock exchange said net income for the quarter was US$4.8 million, versus net income of US$4.6 million in the first quarter of 2004 and a net loss of US$49 million for the second quarter of 2003, which includes continued and discontinued operations.
Total revenue in second quarter 2004 decreased 18.7% to US$120.0 million from US$147.6 million a year ago, and decreased 6.5% sequentially.
“During the second quarter Nasdaq made continued progress toward our strategic objectives. While weak volumes market-wide pressured revenue, ongoing expense reductions produced an increase in profits from last quarter. Further, we believe we are beginning to stabilize market share through price leadership and ongoing product enhancements,” said Nasdaq CEO, Robert Greifeld, in a news release.
In July Nasdaq made a decision to move ahead with opportunities to consolidate space in leased real estate facilities, and expects to record charges associated with this action of approximately $22 million to $24 million in 2004.
Greifeld concluded, “As we enter the second half of the year, we will continue to execute aggressively on our strategic plan to increase Nasdaq’s trading share, capture additional issuer listings, and reduce our ongoing expense base to create a strong and sustainable profitable business model… Our ultimate objective is to reinforce Nasdaq’s standing as the marketplace of choice for all participants and to lever this status to create solid long-term earnings growth.”