Nasdaq Q3 Financial Results
Nasdaq Incorporated have published their financial results for Q3 2019. The report was revealed on Wednesday, October 23, 2019. The immediate impression is that there was a slight rise in net revenues. However, when compared to their annual net income, there was also a slight decline. The third quarter for Nasdaq saw a $32 Million increase in net revenues yearly, jumping to a total of $632 Million. When compares to a monthly basis, there was a $9 Million increase in revenue. This time last year Nasdaq had pulled in $623 Million. Overall, there was a 6% Positive Growth for the firm.
$12 Million of the $623 Million were thanks to recent acquisitions. Nasdaq recently bought out Quandl and Cinnober. However, the funds they brought it were offset by a negative divestiture impact on the exchange. In total, Nasdaq lost $17 Million from these impacts, which saw their recent acquisitions be unfavourable for the foreign exchange firm. The bad luck didn’t stop there either, with the Net Income in Q3 2019 being $13 Million lower than this time last year. There was an 8% drop in income for the firm, earning only $150 Million. Last year they made $163 Million, and with the lowered earnings, their shares have fallen in value as well.
The report also indicated their market service performance, which factors in 36% of the yearly net income. Their market service performance in Q3 was estimated at around $226 Million, which is an increase of 3% since last year, earning an extra $4 Million. When looking at the Fixed Income and Commodities Clear Trading Service, there was also another drop in revenues. This service earned only $3 Million, dropping down to $16 Million in quarterly valuation. Unfortunately, lowered fixed incomes in the United States and Europe forced these volumes.
The President and Chief Executive Officer at Nasdaq, Adana Friedman, spoke on the Q3 Results. She stated: “Our strong third-quarter 2019 results reflect significant contributions from across our franchise. I am especially pleased that we have been able to continue delivering strong growth. We’ve expanded our technology and analytics offerings, while simultaneously benefiting from rising equities market shares. It’s now busy trading and IPO environments. At the same time, we are progressing on significant initiatives. This includes the deployment of our next-generation market technology solutions and enhancing our offerings to the private markets. This will enable us to do more for our clients in future periods.”