Tech business helps boost Nyse Euronext Q2 results

Tech business helps boost Nyse Euronext Q2 results

Nyse Euronext has posted a second quarter net profit of $184 million compared to a loss of $182 million for the same period the previous year, boosted by derivatives trading revenues and strong figures from its information services and technology business.

The transatlantic exchange operator reported stable revenues for Q2 of $1.25 billion but had only $32 million of pre-tax merger expenses and exit costs compared to $442 million in the second quarter of 2009.

Excluding the impact of these items, net income was $167 million, or $0.64 per diluted share, up 27% on $132 million, or $0.51 per diluted share, in Q2 2009. The board has declared a Q3 cash dividend of 30 cents a share.

The strong results were driven by a 39% rise in revenues from derivatives trading, from $219 million in the second quarter of last year to $305 million in Q2 2010.

Meanwhile, the information services and technology business saw revenues of $107 million, up 29% from $83 million in Q2 2009, primarily driven by the impact of the Nyfix acquisition and an increase in global SFTI and software sales revenue. Adjusted Ebitda was $28 million, up 56%.

Technology represented 16% of net revenue and seven per cent of operating income for the group, up from 14% and five per cent, respectively, in the second quarter of 2009.

Duncan Niederauer, CEO, Nyse Euronext, says: "As we move through the remainder of the year, we are focused on further strengthening our competitive position and seamlessly migrating markets and clients to our new data centres, which will serve as the liquidity hubs of the future and create unparalleled low-latency trading communities for market participants."

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