NYSE Euronext Profit Falls; Cost-Cutting Continues

NYSE Euronext, the trans-Atlantic stock exchange operator, said Friday that third-quarter profit fell by 33 percent due merger costs, severance payments and a decline in European derivatives trading.


The New York-based parent of the New York Stock Exchange and Euronext said in a statement that net income fell to $174 million from $258 million. Revenue rose to $1.2 billion in the quarter from $1.1 billion a year earlier.

Chief Executive Duncan L. Niederauer said he is continuing to cut costs and invest in future opportunities "despite turbulent markets and the global financial crisis."

"The past year's technology upgrade of our trading systems served customers well as NYSE Euronext markets operated with great reliability and provided continuous access to liquidity during an especially volatile period."

During the quarter, NYSE Euronext's international derivatives business—Liffe—saw transaction volumes fall 10.3 percent in the quarter.

"The transaction will have a positive impact on earnings from 2009," the exchange operator said.

In the third quarter the exchange continued to make more money in Europe, with operating income of $208 million—unchanged from a year earlier—compared to $97 million in the U.S., a decrease of 15 percent from 2007.

Excluding the operations of French software provider GL Trade, merger expenses, exit costs and other non-recurrent costs, net income for the quarter was $192 million compared with $201 million a year earlier, the exchanger operator said.

NYSE Euronext said earlier this month it sold its 40 percent stake in GL Trade.

In April 2007, NYSE acquired Euronext, operator of the Paris, Amsterdam, Lisbon and Brussels exchanges.