Paris: Trans-Atlantic stock exchange operator NYSE Euronext said on Tuesday its net profit rose 25% in the first quarter on a steep jump in trading of European fixed-income derivatives and US equity options.
The operator of the New York Stock Exchange and markets in Paris, Amsterdam and Brussels reported earnings of $130 million, or 50 cents per share, for the three months ended 31 March. That compares with a profit of $104 million, or 40 cents per share a year earlier, when increased competition among trading platforms led to price cuts and slipping profits throughout the sector.
Excluding special charges such as merger expenses and exit costs, NYSE Euronext’s adjusted income was $140 million, or 54 cents per share, during the quarter.
“Our solid first quarter results were driven by strong growth from our derivatives businesses,” chief executive Duncan Neiderauer said in a statement. Niederauer also cited NYSE Euronext’s acquisition of trading technology provider NYFIX Inc. which it bought for $144 million last November for boosting first quarter earnings.
NYSE Euronext’s revenue totaled $1.08 billion in the first quarter, slightly lower than the $1.14 billion generated during the year-ago period. Net revenue, which is total revenue less transaction costs, liquidity payments and routing and clearing fees, rose 7% to $645 million during the first quarter.
In Europe, the platform’s net transaction and clearing revenue from derivatives rose 50% to $162 million in the first quarter. The company cited a big jump in the average daily volume of fixed income products.
In the US, equity options net transaction revenue rose 31% to $42 million, which NYSE Euronext said was primarily driven by a 63% jump in US equity options average daily volume.