NYSE Euronext has reported net income of USD173m, or USD0.71 per diluted share on a GAAP basis, for the second quarter of 2013, compared to net income of USD125m, or USD0.49 per diluted share, for the second quarter of 2012.
Results for the second quarter of 2013 and 2012 included USD22m and USD12m, respectively, of pre-tax merger expenses and exit costs.
Second quarter 2013 results also included a USD10m gain recorded for non-operating items due to the sale of a portion of its equity stake in LCH.Clearnet and a reserve release related to a favourable settlement with certain European tax authorities which significantly reduced our GAAP effective tax rate.
Excluding merger expenses, exit costs, disposal activity and discrete tax items, net income in the second quarter of 2013 was USD153m, or USD0.63 per diluted share on a non-GAAP basis, compared to USD128m, or USD0.51 per diluted share, in the second quarter of 2012.
“We continue to execute solidly against our business plan as we build momentum toward closing the ICE deal,” says Duncan L Niederauer (pictured), chief executive, NYSE Euronext. “We successfully transitioned our London-based derivatives market to ICE Clear Europe and were ranked number one year-to-date in capital raising with our market share in technology listings increasing to 64 per cent. The strength of our listings franchise continues to build and we are very pleased to welcome Oracle to the NYSE today to close the market. We were also appointed the administrator for LIBOR. Turning to our transaction with ICE, we are gratified that our shareholders and the European Commission have approved the transaction and we are working with the College of Regulators in Europe and other regulators to obtain all the appropriate remaining approvals.”
“Our results for the second quarter reflect the actions we have taken to grow our businesses and diligently manage our cost base and capital,” says Michael S Geltzeiler, group executive vice president and chief financial officer, NYSE Euronext. “On a constant dollar/portfolio basis, costs are down seven per cent year-to-date and we have already achieved 64 per cent of the USD250m Project 14 target for costs reductions, well ahead of the 60 per cent promised by year-end 2013. Further cost savings will come online in the second-half of 2013 with the completed transition to ICE Clear Europe which will position us to easily surpass our full-year cost guidance target of USD1,525m. Turning to capital, capital expenditures year-to-date are running 30 per cent below the prior year period and we are on track to come in well below our 2013 guidance of USD150m. We retired the USD414m remaining on our USD750m June 2013 notes, which combined with strong EBITDA generation, reduced our debt-to-EBITDA ratio to 1.9 times. The debt retirement will reduce interest expense in the second half of the year. All of these actions have helped bolster our business model and set the table for our proposed combination with ICE.”