EXHIBIT 99.1

EX-99.1 2 dex991.htm EXHIBIT 99.1 EXHIBIT 99.1

Exhibit 99.1

The NASDAQ OMX Group, Inc.

Unaudited Pro Forma Condensed Combined Statements of Income

For Each Quarter and Full Year Ended December 31, 2007

(in millions, except per share amount)


	Q107			Q207			Q307			Q407			FY07
Revenues
Market Services	$	597.2		$	584.2		$	681.1		$	697.4		$	2,559.9
Issuer Services		79.6			85.5			86.8			92.3			344.2
Market Technology		31.9			31.9			29.2			42.1			135.1
Other		0.4			0.4			0.3			0.2			1.4

Total revenues		709.1			702.0			797.4			832.0			3,040.6
Cost of revenues
Liquidity rebates		(225.2	)		(238.3	)		(291.2	)		(295.1	)		(1,049.8	)
Brokerage, clearance and exchange fees		(144.7	)		(121.2	)		(150.8	)		(157.8	)		(574.5	)

Total cost of revenues		(369.9	)		(359.5	)		(442.0	)		(452.9	)		(1,624.3	)

Revenues less liquidity rebates, brokerage, clearance and exchange fees		339.2			342.5			355.4			379.1			1,416.3

Expenses
Compensation and benefits		88.6			99.2			100.8			106.0			394.7
Marketing and advertising		6.9			6.7			5.6			11.9			31.1
Depreciation and amortization		28.4			28.3			28.0			28.6			113.2
Professional and contract services		21.9			24.1			19.6			23.8			89.3
Computer operations and data communications		17.5			16.2			13.9			15.9			63.5
Provision for bad debts		3.5			(1.4	)		0.2			(0.4	)		1.9
Occupancy		14.9			16.6			15.9			17.1			64.5
Regulatory		6.7			7.1			7.7			7.4			28.9
General, administrative and other		29.9			20.2			37.7			23.8			111.8

Total operating expenses		218.3			217.0			229.4			234.1			898.9

Operating income		120.9			125.5			126.0			145.0			517.4

Interest income		7.9			12.9			12.8			17.9			51.5
Interest expense		(29.0	)		(29.0	)		(29.0	)		(26.6	)		(113.6	)
Gain (loss) from unconsolidated investees		(0.6	)		0.3			(0.1	)		(0.6	)		(1.0	)
Gain on foreign currency option contracts and forward contracts		—			(1.7	)		35.3			18.2			51.8
Capital gains from shares in equity investments		—			14.7			—			0.5			15.2
Minority interest		—			(0.3	)		(0.4	)		(0.2	)		(0.9	)

Income before income taxes		99.2			122.4			144.6			154.2			520.4
Income tax provision		31.1			36.9			46.1			51.0			165.3

Net income	$	68.1		$	85.5		$	98.5		$	103.2		$	355.1

Basic and diluted earnings per share:
Basic	$	0.39		$	0.49		$	0.57		$	0.55		$	2.01

Diluted	$	0.33		$	0.41		$	0.47		$	0.49		$	1.71

Weighted-average common shares outstanding for earnings per share:
Basic		173.0			173.3			173.7			186.3			176.6
Diluted		212.4			212.5			212.8			214.5			213.1

The NASDAQ OMX Group, Inc.

Unaudited Pro Forma Revenue Detail for Each Quarter

and Full Year Ended December 31, 2007

(in millions)


	Q107			Q207			Q307			Q407			FY07
MARKET SERVICES
Execution Services:
U.S. Operations:
Execution and trade reporting revenues	$	437.0		$	426.1		$	514.2		$	526.0		$	1,903.3
Access services revenues		18.6			19.0			19.1			20.3			77.0
Tape fee revenue sharing		(7.1	)		(7.0	)		(6.5	)		(6.7	)		(27.3	)

Total U.S. Execution Services revenues		448.5			438.1			526.8			539.6			1,953.0
Non U.S. Execution Services revenues		82.8			76.8			81.0			84.3			324.9

Total Execution Services revenues		531.3			514.9			607.8			623.9			2,277.9
Cost of revenues
Liquidity rebates		(225.2	)		(238.3	)		(291.2	)		(295.1	)		(1,049.8	)
Brokerage, clearance and exchange fees		(144.7	)		(121.2	)		(150.8	)		(157.8	)		(574.5	)

Total cost of revenues		(369.9	)		(359.5	)		(442.0	)		(452.9	)		(1,624.3	)

Revenues less liquidity rebates, brokerage, clearance and exchange fees from Execution Services		161.4			155.4			165.8			171.0			653.6
Market Services Subscriptions:
U.S. Operations:
Proprietary revenues		19.8			21.1			22.8			24.3			88.0
Non-proprietary revenues		32.1			33.7			34.7			32.6			133.1
UTP Plan revenue sharing		(9.6	)		(11.6	)		(12.4	)		(12.2	)		(45.8	)
Revenue sharing programs		(3.1	)		(1.5	)		(1.4	)		(1.1	)		(7.1	)

Total U.S. Market Services Subscriptions revenues		39.2			41.7			43.7			43.6			168.2
Non U.S. proprietary revenues		18.9			20.0			21.4			22.3			82.6

Total Market Services Subscriptions revenues		58.1			61.7			65.1			65.9			250.8
Other Market Services revenues		7.8			7.6			8.2			7.6			31.2

Total revenues less liquidity rebates, brokerage, clearance and exchange fees from Market Services		227.3			224.7			239.1			244.5			935.6

ISSUER SERVICES
Corporate Client Group:
U.S. Operations:
Annual renewal fees		30.7			31.1			31.6			32.2			125.6
Listing of additional shares fees		9.7			10.1			10.4			10.4			40.6
Initial listing fees		5.4			5.5			5.6			5.7			22.2
Corporate Client services		11.7			13.2			13.9			13.7			52.5

Total U.S. Corporate Client Group revenues		57.5			59.9			61.5			62.0			240.9
Non U.S. Corporate Client Group revenues		13.2			14.8			13.6			18.7			60.3

Total Corporate Client Group revenues		70.7			74.7			75.1			80.7			301.2
Financial Products:
U.S. Operations:
Licensing revenues		7.3			9.0			10.6			10.8			37.7
Other revenues		1.6			1.8			1.1			0.8			5.3

Total U.S. Financial Products revenues		8.9			10.8			11.7			11.6			43.0

Total Issuer Services revenues		79.6			85.5			86.8			92.3			344.2

Market Technology
Non U.S. Operations:
License, support and project revenues		22.0			21.6			18.5			26.0			88.1
Facility management services		6.1			8.1			8.0			8.9			31.1
Other revenues		3.8			2.2			2.7			7.2			15.9

Total Market Technology revenues		31.9			31.9			29.2			42.1			135.1
Other revenues		0.4			0.4			0.3			0.2			1.4

Total revenues less liquidity rebates, brokerage, clearance and exchange fees	$	339.2		$	342.5		$	355.4		$	379.1		$	1,416.3