NYSE Euronext reported net income of US$258 million for the three months ended September 30, as compared to net income of US$68 million for the same quarter last year.
The comparative results for 2006 reflect the operations of NYSE Group only.
Included in the results for the quarter are US$22 million in merger expenses incurred in connection with both the acquisition of Archipelago Holdings and the combination with Euronext N.V.; a US$32 million gain on the sale of the member firm regulatory functions of NYSE Regulation to FINRA; and, a US$55 million deferred tax benefit related to an enacted reduction of the UK corporate tax rate.
At constant USUS$/Euro exchange rates, neutralizing the impact of acquisitions and dispositions of businesses and equity investments for the period, and on a non-GAAP basis, NYSE Euronext’s revenues, net of activity assessment fees, for the three months ended September 30, increased 34%, while fixed operating expenses decreased 8% compared to 2006.
NYSE Euronext derived 25% of its third quarter 2007 net revenues (defined as total revenues, net of liquidity payments, routing and clearing fees) from derivatives trading, 18% from European cash trading, 12% from U.S. cash trading, 13% from market data, and 12% from listings. The firm’s operating margin increased to 31% of total revenues, compared to 26% for the same period a year ago.
“During the third quarter, we delivered record financial results through strong growth across our business lines, driven largely by record trading volumes in the U.S. and Europe and ongoing expense control,” said Nelson Chai, executive vice president and CFO. “These results reflect the tremendous benefits we derive from operating a globally diversified company, with a business model that will continue to serve us well as we make further progress towards realizing the synergies related to the NYSE Euronext merger.”