The newly public NYSE Group Inc. yesterday reported higher profits for its latest quarter.
The NYSE reported net income of US$30.3 million for the three months ended March 31, compared to US$26 million in the same period last year. These results include the operations of the New York Stock Exchange Inc. for the full quarter and the operations of NYSE Arca only since the March 7 merger between NYSE and Archipelago Holdings Inc.
Included in the first quarter results are a US$37.7 million charge related primarily to a one-time compensation award granted to NYSE employees at the time of the merger as well as a US$20.9 million gain on the sale of an equity investment. Fiscal 2005 results only included the operations of the NYSE.
“A year ago when we announced the merger of NYSE and Archipelago Holdings, we laid out integration targets for annualized cost savings of US$100 million by the end of 2006 with additional savings of US$100 million by the end of 2007,” said Nelson Chai, CFO and executive vp, NYSE Group, in a release “Our first quarter results reflect our continued focus on integrating our businesses and achieving those cost savings.”
The total number of NYSE-listed issuers at March 31, rose to 2,682 compared to 2,672 at December 31, 2005 and 2,630 at March 31, 2005. For the three months ended March 31, the NYSE Group handled 115.7 billion shares of NYSE listed issues, or 76.7% of the trading in NYSE listed issues, versus 112.0 billion shares and 102.5 billion shares for the three months ended December 31, 2005 and March 31, 2005, respectively.
The NYSE Group’s share of trading in NYSE Arca and Amex listed issues in the quarter was 33.2%, a decrease from 34.7% for the previous quarter, and an increase from 27.5% for the same three months in 2005. Its share of trading in Nasdaq listed issues was 23.0%, up from 22.1% for the past quarter, but down from 23.6% for the quarter last year. And, its share of trading in exchange-traded funds increased to 42.8% from 40.5% in the prior quarter and 32.9% for the same period last year. Finally, its share of trading in equity options contracts decreased to 10.9% from 11.5%.