Euronext profits boosted by derivatives and cuts

THE NYSE Euronext exchange reported a 12 per cent rise in fourth-quarter profits yesterday as vigorous cost-cutting offset the impact of fierce competition and lower trading volumes.

The transatlantic operator beat expectations with a net profit of $172m (£110m) for the three months to the end of December, compared to a loss of $1.3bn a year earlier. Earnings per share were 58 cents.

The bourse has seen its trading volumes shrink in recent years as rivals encroach on its turf in the US and Europe, forcing it to cut prices.

As well as creating savings through making redundancies, NYSE Euronext was supported by a 21 per cent jump in revenues from its ever-more important derivatives business.

Chief financial officer Michael Geltzeiler said: “Our fourth quarter results represented the third consecutive quarterly increase in net revenue, reflecting increasing momentum in our business model and the continuing benefit of our various cost reduction programmes.” Fixed operating expenses dropped ahead of predictions by nine per cent to $432m in the quarter. The exchange said the full value of its restructuring efforts would feed through this year.