NEW YORK (Bloomberg) — Bermuda-based MF Global Ltd., the derivatives broker that lost more than three quarters of its market value this year, rose as much as 17 percent in New York trading after reporting earnings that beat analysts' estimates.

MF Global reached $7.49 on the New York Stock Exchange, a seven-week high, after saying profit fell 80 percent on costs tied to an initial public offering and a review of risk controls following a trading loss in February. Excluding one-time gains and losses, earnings of 29 cents a share beat the 23-cent estimate of 10 analysts surveyed by Bloomberg.

"With our new capital structure in place and our investment-grade ratings reaffirmed, MF Global is well positioned to create value for its clients and shareholders," chief executive officer Kevin Davis said in the statement.

MF Global shares tumbled 80 percent this year as investors grew concerned about the company's ability to finance operations and tighten risk controls after a $142 million loss from unauthorised wheat-futures trades. The brokerage repaid debt and raised $150 million from buyout firm J.C. Flowers & Co. to quell speculation that customers would withdraw their money.

Net income for the fiscal first-quarter ended June 30 declined to $14.4 million, or 12 cents a share, from $72.9 million, or 70 cents, a year earlier, the company said in a statement yesterday.

The results included $17.7 million in pretax compensation expenses tied to its spin-off from hedge-fund manager Man Group Plc in July 2007. Consulting fees more than doubled to $31 million as MF Global completed two independent reviews to bolster risk controls that could help prevent additional trading losses.

MF Global said today it's "in the process" of implementing recommendations from FTI Consulting Inc. and Promontory Financial Group. The company also named Tracy Lowery Whille, a former senior managing director of compliance at Bear Stearns Cos., as chief compliance officer.

"Management credibility still remains a meaningful issue," Banc of America Securities analyst Christopher Allen wrote in a note to clients before earnings were released. Paying off the debt "removes the risk of a potential death blow to MF and should help stem migration of customer balances."

Net revenue, which excludes interest and transaction-based expenses, was $374.7 million, compared with the company's forecast in June of $360 million to $390 million. MF Global, which has its operational headquarters in New York, earns fees by executing trades and clearing transactions to ensure the delivery of commodities, equities or cash to its customers.

Commission revenue rose less than volume as clients increasingly placed trades electronically. Execution and clearing commissions rose five percent from a year earlier to $493 million. Total volume rose 17 percent to 550 million contracts, compared with a June forecast for trading of as many as 580 million contracts.