Intercontinental Exchange Posts Higher Earnings

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 [e-mail]

(END) Dow Jones Newswires

November 01, 2016 08:45 ET (12:45 GMT)

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