Nasdaq posted profits in its equities businesses during the first quarter, despite hitting headwinds from foreign exchange rates.
The exchange’s cash equities business, which comprises 11% of total net revenues, posted net trading revenues of $59 million in the first quarter of 2015, up $2 million compared to the first quarter of 2014. The increase in cash equity trading revenue resulted primarily from higher U.S. cash equity average capture and European industry volumes, partially offset by the impact of changes in foreign exchange rates.
Nasdaq’s equity derivatives business, which is 9% of total net revenues, saw net trading and clearing revenues drop to $46 million in the first quarter of 2015, down $10 million compared to the first quarter of 2014. The decline in equity derivatives revenue was driven by lower average net capture and industry volumes in U.S. options, while changes in foreign exchange rates more than offset the impact of higher volumes in European products.
Despite the drop in derivatives, the listing services (12% of total net revenues) posted revenues of $64 million in the first quarter of 2015, up $6 million compared to the first quarter of 2014 due to certain pricing actions and increases in the number of both U.S. and European listed companies, partially offset by a lower number of initial public offerings (IPOs) and the impact of changes in foreign exchange rates.
Access and broker services (12% of total net revenues) saw a drop to $59 million in the first quarter of 2015, a decline of $1 million compared to the first quarter of 2014, as organic revenue increases were offset by the impact of changes in foreign exchange rates.
Lastly, information services (25% of total net revenues) climbed slightly to $125 million in the first quarter of 2015, up $2 million from the first quarter of 2014.
Overall, first quarter net revenues were $507 million, down 4% from $529 million in the prior year period, driven primarily by a $29 million negative impact from foreign exchange rates.
On a GAAP basis, net income attributable to Nasdaq for the first quarter of 2015 was $9 million, or $0.05 per diluted share, compared with $103 million, or $0.59 per diluted share, in the prior year quarter.
On March 31, 2015, the company had cash and cash equivalents of $328 million and total debt of $2,306 million, resulting in net debt of $1,978 million. This compares to net debt of $2,130 million at March 31, 2014.