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NYSE Euronext announces strong Q1 2011 results

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NYSE Euronext (NYX) has reported net income of USD155 million, or USD0.59 per diluted share for the first quarter of 2011, compared to net income of USD130 million, or USD0.50 per diluted share for the first quarter of 2010. 

Results for the first quarter of 2011 and 2010 include USD21 million and USD13 million, respectively, of pre-tax merger expenses and exit costs.  Merger expenses and exit costs in the first quarter of 2011 included USD15 million related to the proposed merger with Deutsche Boerse. Excluding the impact of these items, net income in the first quarter of 2011 was USD177 million, or USD0.68 per diluted share, compared to USD140 million, or USD0.54 per diluted share, in the first quarter of 2010.
“These solid results reflect growing strength and momentum across our businesses and validate our long-term strategy to focus on diversifying and expanding our global footprint as the leading global multi-asset exchange,” says Duncan L Niederauer (pictured), CEO, NYSE Euronext.  “Our innovative NYSE Liffe US launch of interest rate products is off to a strong start, bolstered by the unique benefits of New York Portfolio Clearing.  Our listings franchise continues to expand through transfers from Nasdaq, and we were the global leader in IPOs in the first quarter.  Lastly, our technology services pipeline continues to build and will accelerate toward our stated revenue goals for 2011. 
“We are confident that our strong standalone growth prospects will be enhanced and accelerated by the proposed merger with Deutsche Boerse, through significant efficiency gains, earnings growth and multiple expansion for our shareholders. I look forward to articulating the power of the proposed combination at our annual stockholder meeting later today in New York.”

Michael S Geltzeiler, Group Executive Vice President and CFO, NYSE Euronext says: “Our first quarter results represent a return to the growth trajectory established for NYSE Euronext before the second half of 2010, and underscores the power of the inherent leverage in our model both year-over-year and sequentially.  Net revenue growth of 5% year-over-year, accompanied by a 3% decrease in expenses drove a 21% increase in operating income, a 26% increase in diluted earnings per share and incremental margins of over 130%.  We are continuing our multi-year cost containment initiative which has reduced our cost base by over USD600 million since the merger with Euronext in 2007, on a constant dollar, constant portfolio basis.  Higher EBITDA and lower capital expenditures have translated into strong free cash flow which, supported by an ‘A’ rated balance sheet, creates significant organic growth opportunities and strongly positions us to return capital to shareholders.”  

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