NYSE Euronext Announces Strong 1Q Results, Makes Case for Deutsche Boerse Merger (NYX)

NYSE Euronext NYX reported net income of $155 million on Thursday, or $0.59 per diluted share for the first quarter of 2011, compared to net income of $130 million, or $0.50 per diluted share for the first quarter of 2010. Diluted EPS of $0.68 is up 26% vs. 1Q10; and up 48% vs. 4Q10. "These solid results reflect growing strength and momentum across our businesses and validate our long-term strategy to focus on diversifying and expanding our global footprint as the leading global multi-asset exchange," said Duncan L. Niederauer, CEO of NYSE Euronext. "Our innovative NYSE Liffe U.S. launch of interest rate products is off to a strong start, bolstered by the unique benefits of New York Portfolio Clearing. Our listings franchise continues to expand through transfers from Nasdaq, and we were the global leader in IPOs in the first quarter. Lastly, our technology services pipeline continues to build and will accelerate toward our stated revenue goals for 2011." Operating income of $264 million is up 21% vs. 1Q10. Adjusted EBITDA, which excludes merger expenses and exit costs, was $334 million, up $50 million, or 18% compared to the first quarter of 2010. CEO Niederauer also made note of the pending merger proposal by Deutsche Boerse: "We are confident that our strong standalone growth prospects will be enhanced and accelerated by the proposed merger with Deutsche Boerse, through significant efficiency gains, earnings growth and multiple expansion for our shareholders. I look forward to articulating the power of the proposed combination at our annual stockholder meeting later today in New York." NYSE Euronext is a global operator of financial markets and provider of trading technologies. The company offers a range of products and services in cash equities, futures, options, swaps, exchange-traded products, bonds, carbon trading, clearing operations, market data and commercial technology solutions. Shares closed higher by $0.10 on Wednesday, to $39.39.