Economy services business boosts Nasdaq’s quarterly Gain

REUTERS: Exchange operator Nasdaq Inc posted a gain, aided by higher earnings in non-trading businesses that are related and its marketplace services. Nasdaq has been raising its presence in related businesses, which provides market information services, whose earnings flows are affected by market amounts. Revenue from the biggest unit – economy services, which oversees transactions, clearing and settlements, rose 2.9 percent to US$611 million aided by greater trading volumes. Revenue from non-trading businesses, which includes information services and marketplace technology, cumulatively rose 14.6 % to US$243 million. Nasdaq reported net income attributable of US$246 million, roughly US$1.45 per share, in the fourth quarter ended Dec. 31, compared with a loss of US$224 million, roughly US$1.35 per share, a year ago. On an adjusted basis, the business earned US$1.05 per share, compared with analysts’ average estimate of US$1 per share, according to Thomson Reuters I/B/E/S. If the amounts were comparable, it was not immediately clear. The fourth quarter included a reduction in tax expenses of about US$87 million related to the remeasurement of deferred tax liability on account of the new U.S. tax legislation. Operating expenses climbed 1.6 percent from a year earlier to US$392 million. Revenue, excluding transaction-based expenses, rose 6 percent to US$635 million, beating Wall Street estimate of US$630.4 million. (Reporting From Aparajita Saxena in Bengaluru; Editing by Supriya Kurane)

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