Intercontinental Exchange Posts Higher Earnings
02 November 2016 - 12:00AM
Dow Jones News
Exchange operator Intercontinental Exchange Inc. posted higher
earnings and revenue in the third quarter, partly driven by
acquisitions, while its trading fees declined.
ICE has been snapping up firms in a bid to grow its footprint
and broaden its revenue base. ICE last year bought Interactive Data
Corp., giving it hard-to-get pricing data on corporate bonds, as
well as London-based energy-trading venue Trayport.
In the latest quarter, Interactive Data continued to drive
results. Revenue from data services more than doubled from a year
earlier, to $489 million, thanks to the addition of $261 million
from Interactive Data and Trayport.
Later this week, the company plans to complete a five-for-one
stock split.
Chief Executive Jeffrey Sprecher said regulation and automation
has been driving changes in the risk management, data and capital
efficient solution businesses it runs.
ICE said transaction and clearing revenue fell 6.5% to $777
million. Such fees rise and fall with trading volume. Fellow
exchange CME Group Inc. said last week that a combination of record
trading volume last year and lower volumes this quarter led to
nearly flat revenue.
In all, ICE reported a profit of $344 million, or $2.86 a share,
up from $306 million, or $2.76 a share, a year prior. Excluding
certain expenses, its per-share profit rose to $3.21 a share from
$2.91.
Revenue increased 19% to $1.42 billion, while revenue less
transaction-based expenses rose 32% to $1.08 billion.
Analysts polled by Thomson Reuters had expected $3.22 a share in
adjusted earnings per share and $1.08 billion in revenue.
Operating expenses, meanwhile, rose 61%.
Write to Austen Hufford at austen.hufford@wsj.com
(END) Dow Jones Newswires
November 01, 2016 08:45 ET (12:45 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
CME (NASDAQ:CME)
Historical Stock Chart
From Jun 2024 to Jul 2024
CME (NASDAQ:CME)
Historical Stock Chart
From Jul 2023 to Jul 2024