Nasdaq first-quarter profit surges 40 percent on tech unit

NEW YORK (Reuters) - Nasdaq Inc reported a 39.5% jump in first-quarter profit on Wednesday as a pickup in the exchange operator's non-transactional businesses, including market technology, overshadowed a softer trading environment.

The company's net income rose to $247 million, or $1.48 per diluted share, in the quarter ended March 31, from $177 million, or $1.05 per diluted share, a year earlier.

Not including one-time items such as merger and acquisition costs, Nasdaq earned $1.22 a diluted share, topping analysts' average expectations by 5 cents, according to IBES data from Refinitiv.

"I am pleased that we delivered solid revenue growth in the Market Technology and Information Services segments during the first quarter of 2019, even as capital market conditions presented certain headwinds in the form of lower industry trading and IPO volumes," Chief Executive Officer Adena Friedman said in a statement.

Net revenue fell to $634 million from $666 million, largely due to the divestiture of its public relations and digital media services units. Analysts expected revenue of $632.45 million.

Market services revenue dipped 7 percent to $233 million in the quarter, while corporate services fell 1 percent to $71 million.

Information services revenue rose 11 percent to $193 million.

Market technology revenue surged 28 percent to $77 million, helped by the company's acquisition of Swedish financial technology provider Cinnober.

(Reporting by John McCrank; Editing by Bernadette Baum)