Nasdaq,, has announced its third quarter results for its 2018 fiscal year. The firm, which is also , saw an annual decline in net revenues during the period.
In the third quarter of this year, net revenues were $600 million. This is down by $3 million from the same time period last year. However, despite the decline, the net revenues did include a positive $28 million in organic growth, which translates to 5 per cent.
In addition, the quarter also benefited from a $22 million impact from the inclusion of revenues received from the acquisition of eVestment. Unfortunately for the firm, these bonuses were offset by a loss of $46 million, which was the result of the divestiture of the Public Relations Solutions and Digital Media Services businesses. This is in addition to a $7 million unfavourable impact from foreign exchange (forex) rates changes.
“As we look forward, we remain focused in the near-term on the early implementation of our strategic re-alignment to maximize opportunities as a technology and analytics provider, while ensuring we continue to achieve the highest possible effectiveness in our foundational marketplace businesses.”
Nasdaq revenues by sector
Taking a more specific look, equity derivatives trading and clearing, which contributes to 11 per cent of total net revenues for the , was up by $6 million year-on-year in the third quarter of this year, reaching $68 million. According to the statement from the firm, the increase was largely due to higher US industry trading volumes and net capture rate. However, gains were slightly offset by lower US market share.
Cash Equity Trading, which also makes up 11 per cent of net revenues, experienced net revenues of $63 million. In comparison to the prior year period, this is up by $1 million. Despite a lower net capture rate, this sector was bolstered by higher trading volumes in the US and higher market share in the country.
Contributing to 3 per cent of total net revenues is fixed income and commodities trading and clearing. For this sector, net income was $19 million in the third quarter. Comparing this to the same time last year, this is down by $1 million. Nasdaq largely attributes this loss to a decline in revenues for US fixed income products. The firm also sights an unfavourable impact from forex rates.
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