The quarter's results "were driven by robust trading volumes, strong revenue generation from new initiatives across our segments and continued cost discipline,'' said Duncan L. Niederauer, CEO, NYSE Euronext.
The rest of the year will be marked by
Results for the second quarter of 2010 and 2009 include $32 million and $442 million, respectively, of pre-tax merger expenses and exit costs. Second quarter of 2010 results also include a net $54 million pre-tax gain from disposal activities. Excluding the impact of these items, net income in the second quarter of 2010 was $167 million, or $0.64 per diluted share, compared to $132 million, or $0.51 per diluted share, in the second quarter of 2009.
“During the quarter, we continued to invest in new business initiatives that will drive our future growth and further reduced our fixed operating expenses, said Michael S. Geltzeiler, group executive vice president and CFO, NYSE Euronext.
Due to the strengthening of the dollar, Geltzeiler said NYSE Euronext is revising downward its projection offull-year 2010 fixed operating expenses to between $1,685 million and $1,729 million.
The exchange operator also reduced debt outstanding by $538 million since the beginning of the year. This has resulted in a debt-to-EBITDA ratio of 1.9 times, down from 2.6 times at the end of 2009.
Derivatives net revenue of $226 million in the second quarter of 2010 increased $57 million, or 34% compared to the second quarter of 2009 and included an $8 million negative impact from foreign currency fluctuations.
U.S. equity options net transaction revenue of $42 million in the second quarter of 2010 increased $9 million, or 27% compared to the second quarter of 2009 and was flat compared to the first quarter of 2010.
NYSE Euronext’s U.S. equity options exchanges accounted for 26% of total consolidated equity options trading in the second quarter of 2010, up from 18% in the second quarter of 2009, but down from 27% in the first quarter.
Cash trading and listings net revenue was $321 million in the second quarter of 2010, a decrease of $38 million, or 11% compared to the second quarter of 2009 and included an $8 million negative impact from foreign currency fluctuations.
European cash products net transaction revenue of $71 million in the second quarter of 2010 decreased $10 million, or 12% compared to the second quarter of 2009 and included a $5 million negative impact from currency fluctuations.
NYSE Euronext’s Tape A matched market share in the second quarter of 2010 was 37%, down from 39% in the second quarter of 2009, but up from 35% in the first quarter of 2010.
SmartPool, NYSE Euronext’s European dark pool established in partnership with
Information Services and Technology Solutions revenue was $107 million in the second quarter of 2010, an increase of $24 million, or 29% compared to the second quarter of 2009 and included a $3 million negative impact from foreign currency fluctuations.
