On a pro forma non-GAAP basis, excluding merger expenses, exit costs and other non-recurring items, net income of NYSE Euronext for the quarter ended June 30, 2008 would have been $200 million, or $0.75 per diluted share, a $29 million or 17% increase versus non-GAAP net income of $171 million, or $0.64 per diluted share, for the quarter ended June 30, 2007.
Taking pro forma non-GAAP results and excluding the impact of exchange rates, as well as acquisitions and dispositions of businesses and equity investments for the period, NYSE Euronext’s revenues, net of activity assessment fees, for the quarter ended June 30, 2008 increased $114 million, or 12%, compared to the quarter ended June 30, 2007 . On the same basis, NYSE Euronext’s operating income increased $28 million, or 10%. Fixed operating expenses (defined as operating expenses, net of Section 31 fees, merger expenses, exit costs, liquidity payments, routing and clearing fees, and excluding regulatory fine income) decreased $19 million, or 4%, compared to the quarter ended June 30, 2007.
"NYSE Euronext remains on track to achieve technology and non-technology savings’ targets related to the NYSE-Euronext merger, and we expect to realize future synergy opportunities from the pending AEMS and American Stock Exchange transactions," said Michael S. Geltzeiler, Group Executive Vice President and Chief Financial Officer, NYSE Euronext. "Beyond the cost saves, we are also committed to investing in growth, which includes broadening our product and service portfolio in both core businesses and new ventures. Our capital allocation will be appropriately balanced between investing in our future and returning capital to our shareholders, as evidenced by our $1 billion stock repurchase program."
NYSE Euronext Market Summary
Global Cash Equities: NYSE Euronext’s cash markets trade more shares than any other equities marketplace in the world, representing over one-third of all cash equities trading globally.
- During the second quarter of 2008, NYSE Euronext’s European cash markets experienced record trading volume of 88 million trades, and a total volume growth of 17% over the same period a year ago.
- Year-to-date, our European exchanges experienced an increase of 28% in total trade volume supported by cash equities up 29%, ETFs up 47% and structured products (warrants and certificates) up 3%, compared to the same period a year ago.
- During the second quarter of 2008, NYSE Euronext’s U.S. cash markets experienced total volume growth of 7% over the same period a year ago.
- Market share of matched transactions for NYSE-listed securities was 47%, compared to Nasdaq at 22% during the second quarter of 2008. Market share of matched transactions for NYSE-listed securities was 52% for the first quarter of 2008.
- NYSE Euronext’s U.S. cash markets also produced a year-to-date handled volume increase of 20% in overall equities trading, which included increases of 16% in NYSE listed securities, 114% in NYSE Arca & Amex listed securities and 68% in ETFs.
- In June 2008, NYSE Euronext's U.S. cash markets traded more volume than any other U.S. exchange, including Nasdaq, in 99.4% of the individual NYSE-listed issues.
Global Derivatives: Liffe and NYSE Arca Options had exceptional growth in the second quarter and first half of 2008.
- In the second quarter of 2008, total Liffe transaction volume increased 22% compared to the same period a year ago. Year-to-date, Liffe continued its strong performance with new trading records, increasing total contracts traded by 25% compared to the year ago period. Volumes in interest rate products rose 33%, equity products (single stocks and indices) up 16% and commodities grew 20%.
- In the second quarter of 2008, NYSE Arca Options experienced total volume growth of 38% compared to the second quarter of 2007. Year-to-date, NYSE Arca continues to outpace broader industry volumes with a volume growth of 54% over the same period last year compared to total consolidated volume growth of 41%.
Global Listings: Through first half of 2008, NYSE Euronext remained by far the world’s leading exchange group with nearly 4,100 listed issuers representing approximately $26.7 / €17.1 trillion in total global market capitalization.
- Year-to-date, NYSE Euronext is the global leader in IPO proceeds with capital raised on our markets totaling $26.4 billion/€16.7 billion, more than any exchange group in the world. In the second quarter of 2008, IPOs by operating companies raised a total of $6.7 billion//€4.3 billion on NYSE Euronext markets.
- NYSE Euronext added 196 new listings and IPOs during the first half of 2008, including Visa (V), the largest IPO in U.S. history and EDP Renováveis (EDPR), the largest European IPO in terms of funds raised during the first half of 2008.
