Diverse exchange group NYSE Euronext Inc. (NYX) reported Tuesday a profit for the fourth quarter compared to last year's loss, citing an increasing momentum in the company's business model as well as the continuing benefit from various cost reduction programs.
The result also reflects the absence of a non-cash impairment charge recorded in the previous year. On a non-GAAP basis, net income increased from the prior year and exceeded analysts' expectations. For the fourth quarter, net income attributable to NYSE Euronext was $172 million or $0.66 per share, compared to a net loss of $1.34 billion or $5.06 per share in the previous year. Non-GAAP net income attributable to the company increased to $151 million or $0.58 per share from $137 million or $0.52 per share reported in the fourth quarter of 2008. On average, 18 analysts polled by Thomson Reuters expected the company to report earnings of $0.48 per share for the quarter. Analysts' estimates typically exclude special items. Non-GAAP results for the recent quarter exclude $44 million in merger expenses and exit costs and the favorable impact of the requisite reversal of discrete tax reserves. Prior-year quarter non-GAAP results excluded $94 million in pre-tax merger expenses and exit costs and a pre-tax $1.59 billion non-cash charge, primarily for the impairment of certain goodwill and indefinite-lived intangible assets. For the third quarter, net income attributable to NYSE Euronext was $125 million or $0.48 per share, compared to $174 million or $0.66 per share last year.
Total revenues for the fourth quarter declined to $1.13 billion from $1.22 billion in the same quarter last year. Gross non-GAAP revenues were $1.01 billion, compared to $1.18 billion a year ago.
Net revenues decreased 6% to $640 million from $683 million last year. Eleven analysts estimated revenues of $638.32 million for the quarter. For the third quarter net revenues declined to $624 million from prior year's $724 million. Revenues from US operations for the fourth quarter decreased to $663 million from $794 million in the previous year. European operations generated revenues of $375 million, down from $410 million in the prior year.
Global derivatives markets net trading revenue, which includes European and U.S. derivatives businesses increased 21% to $182 million from $150 million in the same quarter last year. European derivatives net trading revenue grew 23% to $146 million and U.S. derivatives net trading revenue increased $5 million from the year earlier to $36 million. Global cash markets net trading revenue, which includes U.S. and European cash equities businesses dropped 38% to $139 million. European cash equities net trading revenue decreased $62 million to $80 million and U.S. cash equities net trading revenue declined $24 million to $59 million. Total global listings revenues during the quarter was $106 million, compared to $101 million in the preceding year. Operating income was $166 million, compared to a loss of $1.47 billion in the year-ago quarter. Non-GAAP operating income was flat with last year at $210 million, but increased $13 million or 7% from the sequential third quarter. During the quarter, a total of 20 IPOs listed on NYSE Euronext markets for total proceeds of $14.2 billion. NYSE Euronext said it closed the acquisition of NYFIX on November 30, which will significantly expand the NYSE Euronext's pre-trade product offering and global buy-side and sell-side trading communities. Looking ahead Michael Geltzeiler, Group executive vice president and chief financial officer commented, "As we move into 2010, our new initiatives are gaining traction, we are aggressively moving forward with the NYFIX integration and we expect to realize the full-year benefit from cost reduction programs launched in 2009." For the full year, net income attributable to the company was $219 million or $0.84 per share, compared to a net loss of $738 million or $2.78 per share in the preceding year. Non-GAAP net income attributable to the company decreased to $533 million or $2.04 per share from $763 million or $2.87 per share a year ago. Annual revenues marginally decreased to $4.69 billion from $4.7 billion in the year earlier. Net revenues were $2.48 billion, down from $2.88 billion reported last year. Duncan Niederauer, chief executive officer said, "We continue to make progress with the migration to the Universal Trading Platform that will provide global scale and will be a competitive differentiator and with our data center build-out nearly complete, we will expand the suite of technology services we offer our clients today, while enhancing our ability to develop the cutting-edge products of the future."
Beginning with first quarter 2010 results, the company said it will change its segment reporting and the new reportable segments will be focused on three primary global business units: Derivatives, Cash Equities & Listings and Technology and Information Solutions. Headcount as of December 31, 2009 was 3,231, down 14% from December 31, 2008. NYX closed Monday's regular trading at $22.5 on the NYSE. In the past 52 weeks, the shares have been trading in a range of $14.52 to $31.93.
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June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.