Nasdaq, Inc. (NDAQ) swung to a net loss for the quarter ended Dec. 31, 2016. The company has made a net loss of $224 million, or $ 1.35 a share in the quarter, against a net profit of $148 million, or $0.88 a share in the last year period. On the other hand, adjusted net income for the quarter stood at $161 million, or $0.95 a share compared with $150 million or $0.89 a share, a year ago.
Revenue during the quarter grew 11.75 percent to $599 million from $536 million in the previous year period. Total expenses were 64.44 percent of quarterly revenues, up from 54.10 percent for the same period last year. That has resulted in a contraction of 1034 basis points in operating margin to 35.56 percent.
Operating income for the quarter was $213 million, compared with $246 million in the previous year period.
However, the adjusted operating income for the quarter stood at $275 million compared to $251 million in the prior year period.
"As Nasdaq's new CEO, I’m excited to have the privilege to lead one of the best businesses in the world as we pursue our mission to help our clients more efficiently and effectively navigate the global capital markets," said Adena Friedman, president and chief executive officer, Nasdaq. "Positioned at the intersection of technology and the capital markets, Nasdaq’s objective is to support businesses, capital formation and job creation that serves as a catalyst for global economic growth. The relentless focus on our partnership with investors, corporations, exchanges, banks and broker dealers will continue to serve as the cornerstone of our evolving and advancing service, product and technology offerings as well as provide the foundation and infrastructure that powers global markets."
Working capital increases sharply
Nasdaq, Inc. has recorded an increase in the working capital over the last year. It stood at $478 million as at Dec. 31, 2016, up 40.59 percent or $138 million from $340 million on Dec. 31, 2015. Current ratio was at 1.12 as on Dec. 31, 2016, up from 1.12 on Dec. 31, 2015.
Debt increases substantially
Nasdaq, Inc. has witnessed an increase in total debt over the last one year. It stood at $3,603 million as on Dec. 31, 2016, up 52.41 percent or $1,239 million from $2,364 million on Dec. 31, 2015. Nasdaq Omx Group has witnessed an increase in long-term debt over the last one year. It stood at $3,603 million as on Dec. 31, 2016, up 52.41 percent or $1,239 million from $2,364 million on Dec. 31, 2015. Total debt was 25.46 percent of total assets as on Dec. 31, 2016, compared with 19.93 percent on Dec. 31, 2015. Debt to equity ratio was at 0.66 as on Dec. 31, 2016, up from 0.42 as on Dec. 31, 2015. Interest coverage ratio deteriorated to 5.76 for the quarter from 8.79 for the same period last year.
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