Nasdaq has reported record fourth quarter 2016 net revenues of USD599 million, up USD63 million or 12 per cent from USD536 million in the prior year period, driven primarily by a USD54 million positive impact from acquisitions.
Organic growth in non-trading segments was 5 per cent as compared to the fourth quarter of 2015.
"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," says Adena Friedman (pictured), president and CEO, 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.
"Looking at the fourth quarter 2016, I'm pleased with the strong underlying performances across the majority of our businesses, as reflected in our growth and record revenues. We also took strategic steps to better align our business segments, management, resources and clients. While this had an impact on our quarterly results, we feel it puts us in a stronger position to execute on the market opportunities in front of us.
"Looking ahead to this year, we will remain focused on the successful integration of our acquisitions to ensure their full potential is delivered to our clients and shareholders, the commercialisation of important new technologies that advance our clients ambitions and the ongoing and steady progression of our competitive position around the globe with the goal of delivering double digit total shareholder returns."
GAAP operating expenses were USD386 million in the fourth quarter of 2016, up USD96 million from USD290 million in the fourth quarter of 2015. The increase primarily reflects incremental operating expenses from the acquisitions closed in 2016, an insurance recovery recorded in the fourth quarter of 2015 and increased merger and strategic initiative costs.
Non-GAAP operating expenses were USD324 million in the fourth quarter of 2016, up USD39 million from USD285 million in the fourth quarter of 2015. This increase primarily reflects USD29 million of incremental operating expenses from the acquisitions closed in 2016 as well as USD14 million due to organic growth, partially offset by a USD4 million favourable impact of changes in foreign exchange rates.
