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Nasdaq Quarterly Profit Boosted by Data Business

Nasdaq OMX Group said on Wednesday its profit rose in the second quarter, which was marked by the bungled Facebook IPO, as cost controls and growth in the exchange operator's market data business helped offset a slowdown in trading volumes.

Nasdaq, which runs U.S. and Nordic markets, earned $93 million, or 53 cents per share in the second quarter, up from $92 million, or 51 cents per share, a year earlier.

Excluding one-time items including impairment and restructuring charges, it earned 64 cents a share, compared with 62 cents in the year-ago quarter.

Analysts on average expected the New York-based company to earn 60 cents per share, excluding items, according to Thomson Reuters I/B/E/S.

"This performance was a direct result of our continued focus on cost management, and the execution of our strategy to build strong, recurring and subscription-based revenue businesses that can drive growth, despite the trading environment," Robert Greifled, Nasdaq's chief executive, said in a statement.

Nasdaq said on Friday it plans to pay out $62 million in cash to firms that lost money in Facebook Inc's glitch-ridden initial public offering on May 18, modifying an earlier plan that drew intense criticism from market makers and other exchanges.

Net revenue at the New York-based company was $424 million, versus $415 million a year earlier. Analysts had expected $407.2 million.

The company's global market data products had an 8 percent uptick in revenue to $90 million.

U.S. cash equity trading revenue fell to $373 million from $387 million.

Operating expenses were $249 million, compared with $257 million in the second quarter of 2011.

(Reporting By John McCrank; Editing by Gerald E. McCormick and Maureen Bavdek)

Copyright 2010 by Reuters. All rights reserved.

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