CEO Monthly July 2017

22 CEO MONTHLY / JULY 2017 , Nasdaq, Inc. on July 26 reported financial results for the second quarter of 2017. Nasdaq Reports Second Quarter 2017 Results Mrs. Friedman continued: “At the same time, we have taken a leadership role supporting current and potential corporate issuers through our blueprint to revitalise the U.S. capital markets, which champions reforms and initiatives that we believe improve the public company experience to the benefit of stakeholders throughout and even beyond the broader investment community.” GAAP operating expenses were $358 million in the second quarter of 2017, down $27 million from $385 million in the second quarter of 2016. The decrease primarily reflects lower restructuring and merger and strategic initiatives expense, partially offset by incremental operating expenses from the acquisitions closed in the prior year period and additional costs associated with the early extinguishment of debt. Non-GAAP operating expenses were $315 million in the second Nasdaq’s second quarter 2017 net revenues were $602 million, up $43 million or 8% from $559 million in the prior year period. The second quarter increase in net revenues included a $34 million positive impact from acquisitions and $15 million, or 3%, organic growth, partially offset by a $6 million unfavourable impact due to changes in foreign exchange rates. “In addition to achieving a new quarterly net revenue record, we are making significant progress against our 2017 execution priorities, by commercialising key technologies with new products available through the Nasdaq Financial Framework and Analytics Hub, achieving our merger synergies ahead of our original timeline, and raising our market share in our largest trading categories significantly above prior year levels,” said Adena T. Friedman, President and CEO of Nasdaq. quarter of 2017, up $15 million from $300 million in the second quarter of 2016. This increase reflects $11 million of incremental operating expenses net of synergies from the acquisitions closed in the second quarter of 2016 and a $9 million organic expense increase, partially offset by a $5 million favorable impact from changes in foreign exchange rates. “Reflecting the significant progress achieved on our integrations and identification of additional opportunities, the company is raising its total synergy target. Despite the headwinds that today’s low volatility environment presents, our consistent application of the company’s expense and efficiency discipline is delivering margin improvement and contributing to EPS growth consistent with our aspiration to deliver double-digit total shareholder returns,” said Michael Ptasznik, Executive Vice President and Chief Financial Officer of Nasdaq. Mr. Ptasznik continued, “On the capital front, in the second quarter of 2017 we initiated the company’s first commercial paper program and began paying down borrowings consistent with our stated objectives, following significant buyback activity and a 19% dividend increase announced in the first quarter of 2017. We plan to continue deploying and returning capital in a thoughtful and balanced approach over time.” To learn more, visit: nasdaq.com/ ambition or business.nasdaq. com.