NYSE Euronext Announces First Quarter 2009 Financial Results - GAAP Diluted EPS Of $0.40 - Pro Forma Diluted EPS Of $0.43 - Pro Forma Fixed Operating Expenses Decrease 11% To $422 Million From The Fourth Quarter Of 2008 - Acceleration Of Cost Rationalizat

NYSE Euronext (NYX) today reported net income of $104 million, or $0.40 per diluted share, for the first quarter of 2009, compared to net income of $230 million, or $0.87 per diluted share for the first quarter of 2008. Included in these GAAP results are $23 million of pre-tax merger expenses and exit costs for the first quarter of 2009, and $17 million for the first quarter of 2008.

Pro forma non-GAAP net income for the first quarter of 2009 was $112 million, or $0.43 per diluted share, compared to net income of $240 million, or $0.90 per diluted share, for the first quarter of 2008. Pro forma non-GAAP results exclude activity assessment and Section 31 fees, merger expenses and exit costs, as well as favorable discrete tax credits. A full reconciliation of these non-GAAP results is included in the attached tables.

“Since we reported record results in the first quarter of 2008, the financial services landscape has undergone a significant transformation,” said Duncan L. Niederauer, CEO, NYSE Euronext. “Despite adverse market conditions, we have stayed focused on executing our two pronged strategy, to broaden and diversify our streams of revenue, and at the same time, reduce our costs and make us more efficient, streamlined and agile. With each new quarter, we continue to make steady progress on both fronts, and I am confident that as market conditions stabilize we will be well positioned for growth.”

The table below summarizes our first quarter pro forma non-GAAP results.

Financial highlights on a pro forma non-GAAP basis include:

• Gross revenues, excluding activity assessment fees, were $1,112 million in the first quarter of 2009 in line with $1,110 million reported in the first quarter of 2008. First quarter 2009 gross revenues were impacted by lower European cash and derivatives volumes, currency headwinds and structural changes to the U.S. cash pricing model which increased gross revenues.

• Net revenues, defined as gross revenues less direct transaction costs comprised of Section 31 fees, liquidity payments, and routing and clearing fees, were $604 million for the first quarter of 2009, compared to $767 million in the first quarter of 2008. Net revenues were negatively impacted by net price reductions in both the U.S. and European cash markets, coupled with volume declines in the European cash and derivatives markets. In addition, foreign currency fluctuations on net revenues had a negative impact of ($64) million for the three months ended March 31, 2009.

• Fixed operating expenses, defined as operating expenses less merger expenses and exit costs, direct transaction costs, and excluding regulatory fine income, were $422 million, an increase of 2%, compared to the first quarter of 2008, but an 11%, or $51 million decrease compared to the fourth quarter of 2008. Excluding the impact of currency translation, acquisitions and dispositions of businesses, and selected strategic initiatives, fixed operating expenses in the first quarter of 2009 decreased $41 million, or 10%, compared to the first quarter of 2008.

• Operating income was $182 million, compared to $354 million in the first quarter of 2008 and includes a negative impact of ($29) million for currency fluctuations.

• Diluted earnings per share in the first quarter of 2009 declined by $0.47, or 52%, compared with the prior year period. The decline includes a ($0.07) per share negative impact for currency fluctuations.

“In the first quarter, we accelerated our cost efficiency initiatives, which resulted in a $51 million decline in fixed costs compared to the fourth quarter of 2008,” said Michael S. Geltzeiler, Group Executive Vice President and Chief Financial Officer, NYSE Euronext. “Furthermore we achieved our $120 million first quarter target for run-rate technology savings, we already achieved the $120 million in cost savings related to our acquisition of Amex, and we have significantly increased the pace of our restructuring plans in the U.S. and Europe. Based on our first quarter results and an accelerated company-wide focus on expense rationalization efforts, we are increasing our cost savings guidance by an incremental $100 million to be realized in 2009.”

Other Financial Highlights

• At March 31, 2009, NYSE Euronext had cash, cash equivalents, investment and other securities of $0.7 billion and gross debt of $2.5 billion, a decrease of $0.4 billion from $2.9 billion at December 31, 2008.

• The previously announced strategic partnership between the State of Qatar and NYSE Euronext to build a new integrated cash and derivatives exchange in Doha is in the process of being restructured. NYSE Euronext, as part of the restructured agreement, will now purchase a 20% stake in the Qatar Securities Market (QSM) for $200 million, with installment payments of $40 million over a period of four years from closing. The restructured agreement is now expected to close in the next few months.

• NYSE Euronext completed a partial refinancing of the 364-day back-up facility, which expired on April 1, 2009. The new $500 million 364-day back-up facility will be in place through March 31, 2010. We now have $2.7 billion in committed bank facilities.

• NYSE Euronext completed a €250 million increase of the €750 million 5.375% notes due June 2015 on April 22, 2009. The new €250 million increase has an effective cost of 6.06% and the proceeds from the new note will be used primarily to pay-down the ?250 million notes due in June 2009.

• NYSE Euronext will make a $0.30 quarterly dividend per share payment on June 30, 2009 to shareholders of record as of June 15, 2009.

Market and Business Summary

• In the first quarter of 2009, handled average daily trading volume (ADV) across all markets was 4.0 billion shares traded, a 14.5% increase over the first quarter of 2008, characterized by strong growth across NYSE-listed (Tape A) and NYSE Amex-listed (Tape B) securities of 11.4% and 66.2%, respectively. NYSE-listed (Tape A) matched market share in the first quarter of 2009 was 41.5%.

• NYSE Euronext announced new transaction pricing, effective March 1, 2009, for its NYSE and NYSE Arca platforms. The new fee changes for NYSE and NYSE Arca were effected in conjunction with the start of the roll-out of NYSE execution speed improvements.

• The former Amex cash equities business was rebranded NYSE Amex and all the former Amex businesses were migrated to NYSE Euronext platforms.

• NYSE Euronext and BIDS Holdings, L.P. launched their joint venture, the New York Block Exchange (NYBXSM), an innovative new platform designed to maximize access to liquidity and improve execution quality in the U.S. equity block trading market. Institutional investors and other market participants can now execute block trades on NYBXSM, the first venue of its kind to allow non-displayed liquidity to anonymously access both the displayed and reserve liquidity of the NYSE order book.

European Cash Equities

• In the first quarter of 2009, ADV for NYSE Euronext’s European cash markets was 1.4 million transactions, a decrease of 17.3% from a record 1.7 million transactions executed in the first quarter of 2008. First quarter 2008 trading volumes benefited from higher industry trading volumes driven by increased market volatility during the month of January 2008.

• NYSE Euronext launched SmartPoolSM, a new European dark pool Multilateral Trading Facility (MTF) for trading of block orders on stocks from fifteen European countries.

• NYSE Euronext launched NYSE Arca Europe, an MTF which provides customers with low-cost, high-speed access to the most actively-traded European blue-chip stocks from select European countries not already listed on its European cash regulated markets.

• NYSE Euronext’s cash equities trading successfully migrated to NYSE Euronext’s next-generation Universal Trading Platform (UTP) from the NSC platform. European customers are now benefiting from dramatically decreased internal round trip latency of 150-400 microseconds, as compared to 1.5 milliseconds before the UTP conversion.

• NYSE Euronext announced a new integrated transaction pricing structure, effective April 1, 2009, that is intended to improve the company’s overall competitive position in Europe by simplifying and reducing trading fees for customers across its pan-European cash equity markets.

Global Exchange Traded Products

• NYSE Euronext U.S. matched ADV in the first quarter of 2009 was 610 million shares, compared to 385 million in the first quarter of 2008, a 58.3% increase. The first quarter of 2008 did not include the former Amex Exchange Traded Products business.

• In the first quarter of 2009, consolidated Exchange Traded Products U.S. dollar volume traded represented approximately 40% of all consolidated U.S. dollar volume traded.

• As of the first quarter of 2009, NYSE Euronext had issued over 650 index licenses to various exchange traded index tracking products, compared to approximately 500 as of the first quarter of 2008.

• NYSE Euronext launched a new Futures Incentive Program (FIP) targeting customers active in Exchange Traded Products (ETPs) such as GLD, SLV, and IAU listed on NYSE Arca, as well as gold and silver futures on NYSE Liffe U.S. Eligible participants, who trade gold and silver futures on NYSE Liffe U.S. in conjunction with precious metals ETPs on NYSE Arca, can qualify for fee rebates and benefit from significant cost reductions commensurate with their trading activity.

• NYSE Euronext and the Shanghai Stock Exchange (SSE) signed a Memorandum of Understanding (MOU) to expand their current relationship by establishing a cooperative relationship for the joint development of Indexes and ETFs in China, the U.S. and globally. The MOU builds on the existing cooperation agreement between the former New York Stock Exchange and the Shanghai Stock Exchange established in October 2003.

European Derivatives

• In the first quarter of 2009, European derivatives ADV was 3.8 million contracts, a decrease of 17.0% compared to the first quarter of 2008, but an increase of 2.4% from the fourth quarter of 2008. The first quarter of 2008 was a record quarter for NYSE Liffe. Bclear, NYSE Liffe’s trade administration and clearing service, processed an average of 700 thousand contracts per day in the first quarter of 2009, an increase of 31.6%, compared to the first quarter of 2008.

• NYSE Liffe launched futures contracts on thirteen MSCI indices on Bclear in the first quarter of 2009. The thirteen MSCI indices are widely used by asset managers as well-established benchmarks of companies’ performance in a range of regions and markets around the world and together they offer global coverage. NYSE Liffe’s launch of futures on the MSCI indices is designed to accommodate for the current lack of regional, exchange-traded index futures outside Europe.

• NYSE Liffe, through Bclear, launched commodity cash-settled swap futures and options against the benchmark Robusta Coffee, Cocoa and White Sugar contracts already traded on NYSE Liffe. Further commodity products, including soft and agricultural products, are expected to be added to Bclear in the future.

• NYSE Liffe introduced two new connectivity options that will enable customers in Frankfurt, Germany to access the NYSE Liffe derivatives market faster and more cost-effectively. Customers in Frankfurt are now able to connect to one of two NYSE Euronext Secure Financial Transaction Infrastructure (SFTI) centers in Frankfurt.

U.S. Derivatives

• In the first quarter of 2009, U.S. equity options ADV was 2.3 million contracts, a 17.2% increase compared to the first quarter of 2008, which did not include trading activity from the former Amex options business acquired in the fourth quarter of 2008. Overall U.S. equity options industry ADV contracted 1.5% during the same period. U.S. option ADV for issues in the Penny Pilot was 1.3 million contracts, a 33.0% increase compared to the first quarter of 2008, which did not include the Amex option business.

• NYSE Liffe U.S. precious metals futures ADV in the first quarter of 2009 was 21 thousand contracts, for a total of 1.3 million contracts traded during the quarter.

• NYSE Amex options completed its transition to a new, state-of-the-art trading floor located at the NYSE, supported by NYSE Arca technology that has enhanced speed, order executions and increased capacity.

• NYSE Liffe U.S. completed the upgrade to the latest version of LIFFE CONNECT® and transitioned to its new clearing house, the Options Clearing Corporation (OCC).

Global Listings

• In the first quarter of 2009, a total of four IPOs listed on NYSE and NYSE Amex for total proceeds of $1.2 billion. The four new IPOs were Mead Johnson Nutrition Co. ($828 million) listed on NYSE, NIVS Intellimedia Technology ($2 million) listed on the NYSE Amex, Western Asset Muni Defined ($218 million) listed on NYSE and Nuveen Municipal Value Fund 2 ($173 million) listed on NYSE Amex. NIVS Intellimedia Technology was the first Chinese company to raise capital on NYSE Amex since the acquisition of Amex.

NYSE Technologies

• NYSE Technologies continued the roll-out of the Secure Financial Transaction Infrastructure (SFTI) in Europe and is expected to begin generating revenues in the second quarter of 2009.

• NYSE Technologies’ SFTI network continued its expansion with the addition of DirectEdge, giving SFTI a connection to all displayed U.S. equity markets.

• Société Générale signed an agreement with NYSE Technologies to supply its market data cost management software and services, Data Access and Reporting Tools (DART) Usage Analysis for Bloomberg terminals.

• Itau Securities selected NYSE Technologies to develop a next-generation electronic trading platform that will allow Itau Securities’ customers around the world to send orders directly to Brazil’s BM&F Bovespa market center.

Analyst/Investor/Media Call: April 30, 2009 at 8:00am (NY/EDT)/2:00pm (Paris/CET)

A presentation and live audio webcast of the first quarter 2009 earnings conference call will be available on the Investor Relations section of NYSE Euronext’s website, http://www.nyseeuronext.com/ir. Those wishing to listen to the live conference via telephone should dial-in at least ten minutes before the call begins. An audio replay of the conference call will be available approximately one hour after the call on the Investor Relations section of NYSE Euronext’s website, http://www.nyseeuronext.com/ir or by dial-in beginning approximately two hours following the conclusion of the live call.

Live Dial-in Information:
United States: 800.510.0219
International: 617.614.3451
Passcode: 15588525

Replay Dial-in Information:
United States: 888.286.8010
International: 617.801.6888
Passcode: 48841000

The results of operations of Euronext N.V. for the three months ended March 31, 2009 are reported under U.S. GAAP under the caption “European Operations” in the accompanying tables. Questions regarding Euronext N.V.’s results should be directed to Investor Relations (contact details provided below).

Note: NYSE Euronext net revenues (defined as total revenues less direct transaction costs comprised of Section 31 fees, liquidity payments, and routing and clearing fees) from its primary business activities are represented below as a percentage of total net revenues for the first quarter:

~ Derivatives trading accounts for 24%
~ European cash trading accounts for 17%
~ U.S. cash trading accounts for 9%
~ Market data accounts for 17%
~ Listing accounts for 16%
~ Software and technology services accounts for 7%

To supplement NYSE Euronext’s consolidated financial statements prepared in accordance with GAAP and to better reflect period-over-period comparisons, NYSE Euronext uses non-GAAP financial measures of performance, financial position, or cash flows that either exclude or include amounts that are not normally excluded or included in the most directly comparable measure, calculated and presented in accordance with GAAP. Non-GAAP financial measures do not replace and are not superior to the presentation of GAAP financial results, but are provided to (i) present the effects of certain merger expenses and exit costs, other non-recurring items, and (ii) improve overall understanding of NYSE Euronext’s current financial performance and its prospects for the future. Specifically, NYSE Euronext believes the non-GAAP financial results provide useful information to both management and investors regarding certain additional financial and business trends relating to financial condition and operating results. In addition, management uses these measures for reviewing financial results and evaluating financial performance. The non-GAAP adjustments for all periods presented are based upon information and assumptions available as of the date of this release.

NYSE Euronext Earnings News Release with Tables and Operating Data