Nasdaq beats estimates as volatility surge boosts trading volume

(Reuters) - Nasdaq Inc reported a first-quarter profit that beat analysts' estimates on Wednesday, as the exchange operator benefited from higher trading volumes due to a surge in volatility in global financial markets.

Volatility spiked in February after a prolonged calm in 2017, roiling global equities, bonds, currencies and commodities markets, and remained elevated through the end of March, helping exchanges book gains in the first quarter.

Revenue from market services, the company's largest business that oversees transactions, clearing and settlements, jumped more than 21 percent to $735 million.

Sales from its non-trading related businesses also grew in the quarter. Chief Executive Adena Friedman has focused on these businesses since taking the helm early last year, viewing them as long-term growth drivers.

Sales from corporate services, a non-trading business that oversees market listings, rose 7.5 percent to $172 million, as Nasdaq saw 37 IPOs in the quarter, including those of cloud storage company Dropbox and Chinese video streaming platform iQiyi.

Revenue from the market technology unit rose 7.7 percent to $70 million, while revenue from information services rose 26 percent to $174 million.

Nasdaq's net income attributable rose to $177 million, or $1.05 per share, in the first quarter ended March 31, from $168 million, or 99 cents per share, a year earlier.

On an adjusted basis, the company earned $1.24 per share, edging past analysts' average estimate of $1.20, according to Thomson Reuters I/B/E/S.

Operating expenses rose 17.3 percent to $393 million, in part due to higher compensation and benefits expenses.

The company lowered its full-year adjusted operating expense forecast to a range of $1.30 billion to $1.34 billion from $1.38 billion to $1.42 billion, largely to reflect the closing of the divestiture of the public relations solutions and digital media services businesses earlier this month.

Revenue, excluding transaction-based expenses, rose 14.6 percent to $666 million.

(Reporting by Nikhil Subba in Bengaluru; Editing by Sriraj Kalluvila and Saumyadeb Chakrabarty)