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NYSE Euronext Profit Jumps on Record Trading Volume

NYSE Euronext posted a nearly quadrupled third-quarter profit on Friday as the newly merged
transatlantic exchange operator benefited from record trading volumes during this summer's financial market turmoil.

Ongoing cost cuts also helped drive net income to $258 million, or $0.97 per diluted share, for the three months ended Sept. 30, up from $68 million in the same quarter of 2006, NYSE Euronext said in a statement.

The group made no comment on its outlook.

NYSE Euronext shares were flat in early dealings in Paris, up 0.05 percent at 64 euros by 0835 GMT, bucking a sharply negative DJ Stoxx European financial services index, which was down 1.5 percent.

The stock has gained 30 percent since mid-September but remains about 14 percent below its share price in April when the combined joint stock started trading in Paris.

NYSE Euronext, the operator of the New York, Paris, Amsterdam, Brussels and Lisbon exchanges, said it had quarterly revenues of $1.198 billion, up from $602 million last year.

Analysts had forecast on average revenue of $986.3 million.

NYSE Euronext said its European cash markets had their best quarter ever with an average 1.34 million trades per day, up 85.5 percent year on year, helped by record trading volumes his
summer when markets hit record highs and then fell sharply due to worries over credit markets.

The New York-based group's results follow a trend of surging earnings in the industry. Deutsche Boerse reported a 44 percent rise in third-quarter core earnings and Nasdaq Stock Market, the second-largest U.S. equities exchange, posted a doubled quarterly net income, excluding special items.

The London Stock Exchange, which is due to report later this month, has also predicted "excellent" results.

NYSE Euronext, which completed the merger in April, said it had $1.4 billion of cash as of Sept. 30.

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