NYSE Euronext announces First Quarter 2010 Financial Results

NYSE Euronext announces First Quarter 2010 Financial Results

04/05/10

Financial and Operating Highlights1, 2

  • New businesses continue to gain traction
  • EPS of $0.54, up 26%
  • Net revenue of $645 million, up 7% representing the fourth consecutive quarterly increase
  • Fixed operating expenses of $427 million, below 4Q09 levels despite impact of NYFIX
  • Adjusted operating income of $218 million, up 19%
  • Adjusted EBITDA margin of 44% versus 41%
  • Board Declares Quarterly Dividend of $0.30 per share

    1 All comparisons versus 1Q09 unless otherwise stated.Excludes merger expenses and exit costs.

    2 Adjusted EBITDA defined as earnings before interest, taxes, depreciation and amortization, computed as adjusted operating income excluding depreciation and amortization.

NYSE Euronext (NYX) today reported net income of $130 million, or $0.50 per diluted share for the first quarter of 2010, compared to net income of $104 million, or $0.40 per diluted share for the first quarter of 2009. Results for the first quarter of 2010 and 2009 include $13 million and $23 million, respectively, of pre-tax merger expenses and exit costs. Excluding the impact of these items, net income in the first quarter of 2010 was $140 million, or $0.54 per diluted share, compared to $112 million, or $0.43 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," said Duncan L. Niederauer, CEO, 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 U.S. and with the go-live of our new data centers in the second-half of the year, which will drive new revenue for our NYSE Technologies business."

The table below summarizes our results1:

 
($ in millions, except EPS)       1Q10     4Q09     1Q09  

% 1Q10
vs. 1Q09

Total Revenue2       $1,083     $1,131     $1,142   (5%)
Net Revenue3       645     640     605   7%
Fixed Operating Expenses4       427     431     422   1%
Operating Income4       $218     $209     $183   19%
Net Income4       $140     $150     $112   25%
Diluted Earnings Per Share4       $0.54     $0.58     $0.43   26%
                         

1 A full reconciliation of our non-GAAP results to our GAAP results is included in the attached tables. See also our statement on non-GAAP financial measures at the end of this earnings release.

2 Includes activity assessment fees.

3 Includes transaction-based expenses comprised of section 31 fees, liquidity payments and routing & clearing fees.

4 Excludes merger expenses and exit costs.

Michael S. Geltzeiler, Group Executive Vice President and CFO, NYSE Euronext, commented, "In the first quarter, we continued to execute on those areas of our business we can control and are seeing tangible results. Our new businesses are driving increased revenue, we reduced costs by 10% on a constant dollar, constant portfolio basis and we continued to de-lever with debt to EBITDA levels declining to 2.4 times, down from 2.6 times at the end of 2009. Lastly, the additional transparency of our new segment reporting has served to highlight the strength and diversification of NYSE Euronext for the investment community."

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