NYSE Q1 hit by trading and failed Deutsche Boerse deal

LONDON (Reuters) - NYSE Euronext said its profits fell by almost a third in the first quarter due to a difficult trading environment and costs from its failed merger with Deutsche Boerse .

The New York exchange said profits were down 32 percent to $121 million as revenue fell 17 percent to $952 million in the first quarter.

"Our first quarter results reflect the challenging operating environment which carried over into 2012 and will continue to result in near-term headwinds," said Duncan Niederauer, Chief Executive of NYSE Euronext.

The New York exchange said it incurred $31 million of merger and exit costs for the period including $16 million from a terminated merger with Deutsche Boerse .

NYSE canned the $7.4 billion merger in early February after the deal was rejected by European antitrust authorities, making it the fourth to be blocked among a series of large exchanges deals struck over the last year.

(Editing by Hans-Juergen Peters)