NYSE Euronext Posts $1.34 Billion Loss

The operator of the New York Stock Exchange said adjusted profit in the fourth quarter was $137 million, or 52 cents a share, which was below the estimate of analysts.
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Updated from 3:18 a.m. EST

NYSE Euronext

(NYX)

reported a fourth-quarter loss of $1.34 billion, or $5.06 a share, as it recorded a pretax charge of $1.56 billion from impairment of certain goodwill and indefinite-lived intangible assets related to the merger of NYSE Group and Euronext.

A year earlier, NYSE Euronext reported net income of $156 million, or 59 cents a share.

The operator of the New York Stock Exchange, Euronext and Liffe exchanges, said adjusted profit in the quarter was $137 million, or 52 cents a share, a decrease of 21% from adjusted earnings of $173 million, or 65 cents a share, a year earlier.

Analysts surveyed by Thomson Reuters expected the company to earn 56 cents a share in the fourth quarter.

Gross revenue in the quarter rose 21% to $1.2 billion from $974 million a year earlier, driven by "increased volumes across all venues and pricing changes in the U.S. and European cash markets," the company said in a statement Monday. Net revenue fell 2% in the quarter.

The company said it won't be making stock repurchases at this time, but said it plans to maintain its quarterly dividend of 30 cents a share through 2009.

Over the past year, NYSE has seen its share of trades executed decline as competition has increased. NYSE's matched volume of NYSE-listed stocks fell to 43%during the fourth quarter, from 54.3% during the year-earlier period.

Matched volume represents the share volume of NYSE-listed securities that are executed on an exchange's book as a percentage of consolidated market volume.

NYSE Euronext reported a loss for the year of $738 million, compared with earnings of $643 million in 2007.>P/>Michael S. Geltzeiler, group executive vice president and chief financial officer, said in a statement that the outlook for NYSE Euronext this year is "challenging," and that competitive pressures are increasing.

NYSE Euronext's European derivatives trading operations continued to weigh on the group in the fourth quarter, despite a rebound in volumes from a year earlier. Futures and options contracts traded on Liffe -- the group's European derivatives trading platform -- rose 5% during the quarter to 3.7 million contracts.

But revenue on European derivatives trading fell 20% to $146 million in the fourth quarter from $183 million a year earlier.

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