FN: NYSE profit down but deal on track

02 August 2011

Stock exchange operator, NYSE Euronext, reported a near-20 per cent drop in net profit for the second quarter, due partly to higher costs tied to its planned merger with Germany's Deutsche Börse and the absence of a tax gain recorded in the year-earlier period.

Net profit for the second quarter was $154m, or $0.59 a share, compared with $184m a year earlier, when the Big Board operator benefited from a $54 million pretax gain from divestitures. Stripped of merger and exit costs, disposals and tax gains, net profit in the second quarter of 2011 was $160m, down slightly from $167m, a year earlier.

Chief Executive, Duncan Niederauer, said: "Our solid results in the second quarter reflect our focus on revenue diversification, disciplined cost management and balance sheet strength as we continue to execute against our long-term strategy in an extremely challenging environment".

NYSE said it booked $18m in costs tied to mergers and exiting businesses in the second quarter, of which $12m were tied to the planned deal with Deutsche Börse.

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