* Derivatives revenue rises 14 pct, led by Europe
* Cash trading revenue falls 6 pct
* Adjusted net income 57 cents/share vs 56 cent forecast
* Revenue $600 mln vs $605 mln forecast
NEW YORK/PARIS, April 30 NYSE Euronext,
which is being bought for $8.2 billion by
IntercontinentalExchange Inc, reported a 44 percent rise
in first-quarter profit on Tuesday, as European derivatives
trading volumes increased and costs declined.
The Big Board parent said net income was $126 million, or 52
cents a diluted share, compared with $87 million, or 34 cents a
share, a year earlier.
Stripping out one-time items such as costs related to the
exchange operator's takeover by ICE and a $10 million pre-tax
charge linked to a stock incentive plan, net income was 57 cents
Analysts had been expecting 56 cents a share on average,
according to Thomson Reuters I/B/E/S.
NYSE's net revenue for the quarter fell 0.2 percent to $600
million as a 14 percent gain in derivatives was offset by a 6
percent drop in cash trading and listings, and higher liquidity
payments. Analysts had on average been expecting $605 million.
With trading volumes falling for three straight years and
nearly two-thirds of NYSE's total revenue linked to transaction
and clearings fees, NYSE last year turned its attention to cost
reductions, aiming to eliminate $250 million from expenses by
2014. It cut $115 million in 2012.
Costs fell in the first quarter too, although the biggest
decline was in merger expenses and exit costs, which totaled $8
million, down from $31 million in the year-ago quarter.
NYSE said it was on track to surpass its full-year 2013
"cost-guidance target of $1.52 billion". Operating expenses
totaled $1.72 billion in 2012.
NYSE announced in December that it was being bought by
Atlanta-based derivatives market and clearing house operator
ICE. The deal, expected to close in the second half, 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.
ICE is due to report its results on Wednesday.