Intercontinental Exchange Announces Mixed Results for Q4 2016 and Full Year

ICE generated record operating cash flow of $2.1 billion in 2016, which enabled it to reduce debt by $1 billion.

Intercontinental Exchange (NYSE:ICE), a global network of exchanges and clearing houses, has reported its financial results for the fourth quarter and year ending December 31, 2016, according to an ICE statement.

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During Q4 2016, ICE unveiled the adjusted net income attributable to the group at $352 million on $1.13 billion of consolidated revenues less transaction-based expenses– this represents a loss of -4.9 percent year-on-year from $370 million in Q4 2015. Furthermore, ICE reported diluted earnings per share (EPS) of $0.59 in Q4 2016 on a GAAP basis, a drop of -4.9 percent year-on-year from $0.66 in Q4 2015.

Taking a full-year perspective, ICE‘s total revenues, less transaction-based expenses, in the twelve months ending December 31, 2016 increased 35 percent to $4.49 billion compared to $3.33 billion in 2015.

Additionally, operating income was also on the uptick in 2016, with ICE orchestrating a figure of $1,422 million, compared to just $1,274 million the year earlier, good for a jump of 12.2 percent year-on-year.

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Other points of emphasis

The company posted $1.48 billion in Q4 2016 consolidated revenues, up 22.0 percent from just $1.21 billion in Q4 2015. The figure included $515 million in revenues from Interactive Data and Trayport. In addition, trading and clearing segment revenues at ICE amounted to $1.1 billion in the last quarter, while data and listings segment revenues were $620 million.

ICE completed the last three months through December 2016 with consolidated operating expenses at $580 million, a substantial jump of 62.0 percent year-on-year from $358 in Q4 2015.

During the reported period, consolidated cash flows from operations were also on the uptick, with ICE orchestrating a figure of $2.1 billion for the full year of 2016, up 64 percent compared to the prior year.

In a statementת ICE Chairman and CEO Jeffrey C. Sprecher said: “Amidst a volatile and dynamic environment, we delivered our eleventh consecutive year of record revenue. Despite the challenges of market volatility driven by geopolitics, we achieved our objectives by working closely with our customers across trading, risk management and data to again deliver strong revenue growth, margin expansion and double-digit profit increases. We are excited about collaborating with our customers in 2017 given the range of ways we are working to serve their evolving trading, listing, data and risk management needs.”

Scott A. Hill, ICE CFO, added: “In the first year of our integration of Interactive Data, we surpassed our synergy target and met our ambitious revenue growth target while expanding margins. We also generated record operating cash flow of $2.1 billion in 2016, which enabled us to reduce our debt by approximately $1 billion, announce our third double digit increase in our dividend, and increase our share repurchases for 2017. Our strategy, execution, and disciplined capital allocation has led to significant value creation and future growth opportunities.”


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