NYSE Euronext Q3 Earnings Slumps by 28%

NYSE Euronext Q3 Earnings Slumps by 28%

NYSE Euronext on Friday reported net income of $125 million, or 48 cents a share, for the third quarter of 2009, compared to net income of $174 million, or $0.66 per diluted share for the third quarter of 2008 on a GAAP (Generally Accepted Accounting Principles) basis.

The 28 percent decline in the third quarter profit has been reported due to the plunge in the revenue from equity trading and European competitors took market share.

NYSE Euronext said in a separate statement that it signed agreements with a group of banks and liquidity providers to sell a stake in NYSE Liffe U. S., the company's U. S. futures exchange.

As acknowledged, the results on GAAP basis included the impact from merger expenses and exit costs, "We continue to see stabilization in our core businesses and significant progress on our new initiatives", Duncan Niederauer, Chief Executive if NYSE Euronext.

Chasing the last year elimination of the 230 jobs, the company continued with the elimination of 62 jobs this year, therefore, also succeeding in the goal of reducing the cost of $175 million this year.

Analysts signified that "NYSE Euronext has lost significant market share in its U. S. cash markets over the last years", "Share losses in the European cash business are evident and likely to continue for the foreseeable future, and volume at NYSE Liffe remains soft. Overall, revenue growth remains a challenge for NYSE".

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