UPDATE 1-NYSE Euronext posts 21 pct rise in third-quarter profit

Tue Nov 5, 2013 4:15am EST

* Q3 net income $131 mln, or $0.53 per share

* Revenue rises 3 percent to $574 million

* Listings business has substantial momentum - CEO

* Cost cutting programme 70 percent complete

LONDON, Nov 5 (Reuters) - NYSE Euronext reported a 21 percent rise in third-quarter net income on Tuesday, as revenues at its cash trading and listings business increased.

The New York Stock Exchange parent, currently in the middle of a $10 billion-plus takeover by IntercontinentalExchange Inc , said net income was $178 million, or 73 cents a diluted share, compared with $108 million, or 44 cents a share, a year earlier.

Stripping out one-time items such as costs related to the exchange operator's takeover by ICE, net income was $131 million or 53 cents a share.

Analysts had been expecting 55 cents a share on average, according to Thomson Reuters I/B/E/S.

Net revenue was up 3 percent at $574 million, short of analysts expectations for revenue of $582.3 million.

NYSE Euronext shares are listed in New York. Euronext operates the Paris, Amsterdam, Brussels and Lisbon exchanges.

The group in December said it was being bought by Atlanta-based derivatives market and clearing house operator ICE. The closing of the deal was expected on Nov. 4, but has been postponed because it still needs the approval of some European regulators.

Chief Executive Duncan L. Niederauer said NYSE had built substantial momentum in its listings business, adding the company was especially pleased that microblogging site Twitter selected NYSE Euronext for its hotly-anticipated market debut on Thursday.

Revenue from cash trading and listings was up 5 percent to $295 million.

Operating expenses fell 4 percent, excluding merger expenses and other costs, to $372 million.

The company said its 'Project 14' cost-cutting programme, which aims to save $250 million by the end of 2014, was 70 percent complete.

The NYSE deal gives ICE control of Liffe, Europe's second-largest derivatives market. Derivatives trading remains highly profitable for the exchanges, and new regulations have dramatically expanded the demand for clearing over-the-counter contracts.

NYSE Euronext said revenue from derivatives rose 1 percent year-on-year to $166 million, helped by a 14 percent rise in average daily trading volumes of European interest rate derivatives products.

ICE is due to report its results later on Tuesday.

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