Nyse Euronext (NYX) today reported net income of $125 million, or $0.49 per diluted share, for the second quarter of 2012, compared to net income of $154 million, or $0.59 per diluted share, for the second quarter of 2011.
Results for the second quarter of 2012 and 2011 include $12 million and $18 million, respectively, of pre-tax merger expenses and exit costs. Second quarter 2012 results also include a net $2 million loss from disposal activities related to the previously announced wind down of NYSE Blue. Excluding merger expenses, exit costs, disposal activities and discrete tax items, net income in the second quarter of 2012 was $128 million, or $0.51 per diluted share, compared to $160 million, or $0.61 per diluted share, in the second quarter of 2011.
Financial and Operating Highlights1, 2
- Diluted EPS of $0.51, down from $0.61
- Net revenue of $602 million, down 9%, including $22 million negative FX impact
- Fixed operating expenses of $396 million, down 5% on a constant dollar / portfolio basis
- Operating income of $206 million, down 15%, including $11 million negative FX impact
- EBITDA margin of 45% vs. 47%; Debt to EBITDA ratio 2.1times
- Repurchased 6.9 million shares at average price of $25.60; 11.2 million shares year-to-date
- Board declares third quarter 2012 cash dividend of $0.30 per share
1) All comparisons versus 2Q11 unless otherwise stated. Excludes merger expenses, exit costs, disposal activities and discrete tax items.
2) 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.
"We made good progress in executing against our strategy to unlock the inherent value of our community," said Duncan L. Niederauer, CEO, NYSE Euronext. "We have realigned our client facing and product teams to create a generalist sales force that brings to bear our full-suite of solutions for our clients. We have given notice that we will fully insource clearing and launch NYSE Clearing in June 2013, which will provide us with cost savings and ultimately provide new revenue and better position the Company for the OTC opportunity. Lastly, we made significant headway with our NYSE Liffe U.S. platform with the launch of our GCF repo futures product which fills the increasing market need for a reliable and transparent benchmark for bank funding costs."
Read the full statement here