The Board of Directors of Nasdaq, Inc. (Nasdaq: NDAQ) has declared a regular quarterly dividend of $0.49 per share on the company’s outstanding common stock.
The dividend is payable on September 25, 2020 to shareholders of record at the close of business on September 11, 2020.
“Future declarations of quarterly dividends and the establishment of future record and payment dates are subject to approval by the Board of Directors,” the company said in the statement.
Second quarter 2020 net revenues were $699 million, an increase of $76 million, or 12%, from $623 million in the prior year period. Net revenues reflected a $50 million positive impact from organic growth in the Market Services segment, a $25 million positive impact from organic growth in the non-trading segments and a $3 million increase from the inclusion of revenues from acquisitions, partially offset by a $2 million unfavorable impact from changes in exchange rates.
“I am extremely proud of the Nasdaq team and how we are serving our clients as we continue to navigate the pandemic,” said Adena Friedman, President and CEO, Nasdaq. “Our foundational markets are demonstrating their resilience and the power of a distributed, electronic market model, handling record volumes through multiple periods of extreme volatility. We are also serving investors with thematic index products and data analytics that empower them to navigate through fundamental shifts caused by the pandemic’s economic disruption. We continue to expand and transition our market technology clients to our cloud-based SaaS solutions, including five new clients in the second quarter, which provides for a more flexible and scalable architecture to serve them in the years ahead. While we continue to see some short-term uncertainties in the business climate due to the pandemic’s impact on the economy, we remain steadfast in our conviction and our investment in our longer-term strategy to create a more inclusive, global economy through advanced capital markets technology and expert market knowledge and insights.”
GAAP operating expenses were $384 million in the second quarter of 2020, an increase of $17 million from $367 million in the second quarter of 2019. The increase primarily reflects higher compensation expense and higher restructuring charges, partially offset by lower general, administrative and other costs and decreased marketing and advertising expense due to lower event costs. The lower general, administrative and other costs reflect lower debt extinguishment costs and reduced corporate travel expenses, partially offset by an increase in charitable contributions.
Non-GAAP operating expenses were $327 million in the second quarter of 2020, an increase of $5 million, or 2%, compared to the second quarter of 2019. This reflects a $7 million increase from the impact of acquisitions as well as higher compensation expense, partially offset by lower general, administrative and other costs, decreased marketing and advertising expense and a favorable impact from foreign exchange of $2 million.
“During the second quarter of 2020, we further enhanced the strength of our balance sheet through our successful, 30-year $500 million bond offering,” said Michael Ptasznik, Executive Vice President and Chief Financial Officer, Nasdaq. “We used the proceeds from this offering as well as the temporary cash buffer we established in the first quarter of 2020 to repay all of our commercial paper and the short-term borrowings on our revolver, thereby ending the period with lower leverage but increased available liquidity. As the pandemic continues into the latter half of the year, we continue to invest in our infrastructure to support the strong demand for our products and services as well as provide the capital and resources to deliver on our most important long-term opportunities.”