Nasdaq OMX Group's 2Q profit rises 39 pct

NEW YORK

Nasdaq OMX Group Inc. said Tuesday its second-quarter profit rose 39 percent as strong trading volume lifted the global exchange operator's core businesses. The result beat Wall Street expectations, and the company's shares rose about 3 percent in morning trading.

Nasdaq OMX reported net income for the three months ended June 30 of $96 million, or 46 cents per share, up from a profit of $69 million, or 33 cents per share, in last year's second quarter.

The latest quarter's results included $16 million in charges from divesting businesses, severance expenses, and merger and strategic initiatives.

Excluding those costs, Nasdaq's adjusted profit in the latest quarter was $108 million, or 52 cents per share.

On that basis, the performance beat the consensus forecast of analysts surveyed by Thomson Reuters, who had expected a profit of 49 cents per share, on average.

Revenue rose 8 percent to $390 million from $360 million, less liquidity rebates, brokerage, clearance and exchange fees. The revenue result topped analysts' consensus estimate of $377.1 million.

Separately, New York-based Nasdaq OMX on Tuesday announced plans to acquire SMARTS Group, an Australia-based market surveillance business that helps exchanges monitor compliance with market rules. Financial terms of Nasdaq OMX's acquisition of the privately held company were not disclosed.

Shares of Nasdaq OMX rose 61 cents to $19.61 in morning trading. The stock has traded in a 52-week range of $17.18 to $23.24.

Nasdaq OMX reported higher second-quarter volume in its U.S. and European equities businesses, which helped boost transaction services revenue 20 percent compared with the year-ago quarter, to $186 million. Fears about the European debt crisis fueled higher market volatility and more trading.

Nasdaq OMX said market services revenue rose 10 percent from the year-ago quarter to $270 million.

Gains in those two segments helped offset higher expenses, and revenue declines for the company's market data, market technology and global listing services businesses.