NYSE Euronext has reported net income of $230 million, or $0.87 per diluted share, for the quarter ended 31 March 2008, a $162 million or 238% increase as compared to net income of $68 million, or $0.43 per diluted share, for the quarter ended 31 March 2007.
These results are presented in accordance with US Generally Accepted Accounting Principles (GAAP). The comparative results for 2007 reflect the operations of NYSE Group only.
“Our strong performance in the first quarter of 2008 highlights the growing demand for our broad array of products and services across all of our business units and the inherent operating leverage in NYSE Euronexts diverse business model. We are very pleased with the growth in our transaction-related revenues, which underscores our leadership position in an increasingly competitive environment. We remain focused on executing our global growth strategy, operating with the utmost efficiency, strengthening our competitive position, and providing exceptional customer and shareholder value,” says Duncan L. Niederauer, CEO, NYSE Euronext.
“In addition to producing strong revenue growth, we are well on target to achieve our annual $250 million in technology-run rate savings. In the first quarter, we achieved $70 million in annual IT run-rate savings, which exceeds our previously announced $50 million goal,” adds Joost van der Does de Willebois, acting CFO, NYSE Euronext.
On a non-GAAP basis, giving effect to the Euronext transaction as if it occurred at the beginning of the earliest period presented, and excluding merger expenses and exit costs, the net income of NYSE Euronext for the quarter ended 31 March 2008 would have been $241 million, or $0.91 per diluted share, an $83 million or 53% increase versus non-GAAP net income of $158 million, or $0.60 per diluted share, for the quarter ended 31 March 2007.
At constant US$/ and US$/ exchange rates, neutralising the impact of acquisitions and dispositions of businesses and equity investments for the period, and on a non-GAAP basis, NYSE Euronexts revenues, net of activity assessment fees, for the quarter ended 31 March 2008 increased $236 million, or 25%, while operating income increased $99 million, or 38%, compared to the quarter ended 31 March 2007. In addition, on a normalised basis, revenues increased $129 million, or 12%, while operating income increased $93 million, or 34%, compared to the quarter ended 31 December 2007.
During the first quarter of 2008, NYSE Euronext announced plans to acquire the American Stock Exchange, introduced NYSE Euronext Advanced Trading Solutions in connection with our acquisition of Wombat Financial Software, agreed to purchase a 5% stake in Indias Multi Commodity Exchange, and entered the US futures market through our acquisition of the CME Group precious metals complex.