November 8, 2012 – Revenue for the commercial arm of NYSE Euronext, NYSE Technologies, dropped to $113 million in the third quarter of 2012.
That is a decrease of $12 million, or 10%, compared to the third quarter of 2011. Results included a $5 million negative impact from foreign currency fluctuations.
The decrease in revenue was driven by declines in enterprise software and market solutions revenue, NYSE Euronext said. Clients, it said, have delayed decisions on purchases of software and connections.
To drive the business forward, NYSE Technologies appointed Jon Robson as its new Chief Executive Officer in September.
He succeeded Stanley Young, who left to head enterprise business at Bloomberg, the market data firm.
Highlights for the third quarter of 2012 included:
- NYSE Technologies announced a partnership with Russell Investments to provide technology solutions and server co-location for RussellTick, which includes real time index data for the $3.9 trillion Russell index series. Utilizing the existing NYSE Euronext Global Index Feed (GIF) technology, NYSE Euronext will become the real time distributor of Russell's real time product RussellTick in early December 2012.
- NYSE Technologies is currently revamping global data agreements, including pricing, to better reflect how data is used today. This is anticipated to result in more data products and more favorable pricing and is expected to drive market data revenue higher.
- NYSE Technologies announced that in collaboration with Bolsa Mexicana de Valores (BMV) and Americas Trading Group (ATG) it has built and deployed a state-of-the-art trading infrastructure complete with global connectivity, risk management functionality and direct market data distribution for customers trading in Mexican markets.
Overall, NYSE Euronext reported net income of $108 million, or $0.44 per diluted share, for the third quarter of 2012, compared to net income of $200 million, or $0.76 per diluted share, for the third quarter of 2011.
NYSE Euronext said Project 14 was ahead of schedule in a $250 million cost-cutting plan launched earlier this year, although savings had yet to show through on the bottom line as revenue fell faster than costs.
This story originally appeared at Securities Technology Monitor.