NYSE Euronext, an operator of financial markets and provider of trading technologies, has reported net income of USD172m, or USD0.66 per diluted share, for the fourth quarter of 2009, compared to a net loss of USD1,338m, or USD5.06 per diluted share, for the fourth quarter of 2008.
Non-GAAP net income for the fourth quarter of 2009 was USD151m, or USD0.58 per diluted share, compared to non-GAAP net income of USD137m, or USD0.52 per diluted share for the fourth quarter of 2008.
Non-GAAP results for the fourth quarter of 2009 exclude USD44m in merger expenses and exit costs and the favourable impact of the requisite reversal of discrete tax reserves. Non-GAAP results for the fourth quarter of 2008 exclude USD94m in pre-tax merger expenses and exit costs and a pre-tax USD1,590m non-cash charge, primarily for the impairment of certain goodwill and indefinite-lived intangible assets.
Non-GAAP net income for the full-year 2009 was USD533m, or USD2.04 per diluted share, compared to non-GAAP net income of USD763m, or USD2.87 per diluted share, for the full-year 2008.
Gross revenues, excluding activity assessment fees, were USD1,014m in the fourth quarter of 2009, a 14 per cent decrease compared to the fourth quarter of 2008 and a three per cent decrease compared to the third quarter of 2009.
For the full-year 2009, gross revenues of USD4,299m decreased four per cent compared to full-year 2008. Full-year 2009 gross revenues were negatively impacted by a decline in global cash equities volumes and pricing changes across our European and US cash businesses.
Net revenues, defined as gross revenues less direct transaction costs consisting of Section 31 fees, liquidity payments and routing and clearing fees, were USD640m in the fourth quarter of 2009, down six per cent compared to USD683m in the fourth quarter of 2008, but up three per cent compared to USD624m in the third quarter of 2009. Fourth quarter 2009 net revenues compared to the fourth quarter of 2008 include a USD27m positive impact attributable to foreign currency fluctuations.
Full-year 2009 net revenues were USD2,479m compared to USD2,882 m for full-year 2008 and include a USD123m negative impact attributable to foreign currency fluctuations.
Fixed operating expenses, defined as operating expenses less merger expenses and exit costs, direct transaction costs, and excluding regulatory fine income, were USD432m, compared to USD473 m in the fourth quarter of 2008 and USD431m in the third quarter of 2009.
For the full-year 2009, fixed operating expenses of USD1,683m were down three per cent compared to full-year 2008. Excluding the impact of acquisitions, foreign currency fluctuations and investment in new businesses, underlying fixed expenses were down USD74m, or 16 per cent compared to the fourth quarter of 2008 and were down USD195m or 11 per cent compared to the full-year 2008.
Operating income was USD210m, flat compared to the fourth quarter of 2008, but up USD13m or seven per cent compared to the third quarter of 2009. Fourth quarter 2009 operating income compared to the fourth quarter of 2008 includes a USD10m positive impact attributable to foreign currency fluctuations.
For the full-year 2009, operating income was USD803m compared to USD1,143m for full-year 2008 and includes a USD66m negative impact attributable to foreign currency fluctuations.
Despite the closing of the Nyfix acquisition, at 31 December 2009 total debt declined USD119m from the third quarter of 2009 to USD2.8bn and consists of USD2.2bn in long-term debt and USD0.6bn in short-term debt.
“Our fourth quarter and full-year results were solid, reflecting growing revenue and earnings power driven by our new businesses and our continuing efforts to harmonize our technology infrastructure and trading platforms,” says Duncan L. Niederauer, chief executive NYSE Euronext. “With the addition of Nyfix Marketplace, we expanded our customer base and points of connectivity with our trading communities. We moved forward with the semi-mutualization of our US futures platform, and we plan to do the same with the NYSE Amex options business.”
