NYSE Euronext has reported net income of USD130m or USD0.50 per diluted share for the first quarter of 2010, compared to net income of USD104m or USD0.40 per diluted share for the first quarter of 2009.
Results for the first quarter of 2010 and 2009 include USD13m and USD23m, respectively, of pre-tax merger expenses and exit costs.
Excluding the impact of these items, net income in the first quarter of 2010 was USD140m or USD0.54 per diluted share, compared to USD112m or USD0.43 per diluted share in the first quarter of 2009.
“Our solid first quarter results were driven by strong growth from our derivatives businesses and the first full-quarter’s impact of the NYFIX acquisition,” says Duncan L. Niederauer (pictured), chief executive of NYSE Euronext. “We will look to build on this growth with the anticipated regulatory approval and planned third quarter 2010 launch of New York Portfolio Clearing, coinciding with the launch of interest rate futures contracts on NYSE Liffe US and with the go-live of our new data centres in the second-half of the year, which will drive new revenue for our NYSE Technologies business.”
Total revenue less transaction-based expenses (net revenue), which include Section 31 fees, liquidity payments and routing and clearing fees, were USD645m in the first quarter of 2010, up seven per cent compared to USD605m in the first quarter of 2009.
The increase in net revenue was primarily driven by an 11 per cent increase in net transaction and clearing revenue and a 58 per cent increase in technology services revenue, partially offset by declines in market data and revenue from BlueNext, its environmental trading exchange.
Fixed operating expenses, excluding merger expenses and exit costs, were USD427m, compared to USD422m in the first quarter of 2009. Excluding the impact of acquisitions, foreign currency fluctuations and investment in new businesses, fixed operating expenses were down USD42m, or ten per cent compared to the first quarter of 2009.
Operating income, excluding merger expenses and exit costs, was USD218m, up 19 per cent compared to the first quarter of 2009. First quarter 2010 operating income compared to the first quarter of 2009 includes a USD10m positive impact attributable to foreign currency fluctuations.
Adjusted Ebitda, which excludes depreciation and amortization of property and equipment, amortization of intangible assets and merger expenses and exit costs, was USD284m, compared to USD251m in the first quarter of 2009. Adjusted Ebitda margin was 44 per cent in the first quarter of 2010, compared to 41 per cent in the first quarter of 2009.
At 31 March 2010, total debt declined USD103m from 31 December 2009 to USD2.7bn and consists of USD2.1bn in long-term debt and USD0.6bn in short-term debt.
