Intercontinental Exchange Posts Solid Jump in Q2 Net Income

The net revenue for the quarter remained at $1.4 billion, with an adjusted operating margin of 59%.

Intercontinental Exchange (ICE), the operator of the New York Stock Exchange, has published its financial results for the second quarter of 2020, ending on June 20, showing a consolidated net income of $523 million, a 10.8 percent jump from $462 million obtained in the equivalent quarter of the previous year.

The adjusted net income for the Group stood at $584 million for the quarter, with an adjusted diluted EPS of $1.07.

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ICE operates several global exchanges, clearinghouses, and also offers data services. The total consolidated net revenues for the quarter coming from all its businesses surged 8 percent year-on-year touching $1.4 billion.

“In the first half, we built on our track record of consistent revenue growth, expense discipline, and earnings per share growth. This performance enabled us to return over $1.4 billion of capital to our stockholders through dividends and our stock repurchase program,” ICE CFO Scott A. Hill said in a statement.

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Breaking down the services of the Group, $574 million were generated from the data-based services and $111 million from listings. Form its trading and clearing service, ICE generated $710 million, a yearly uptick of 12 percent.

The consolidated operating margin for the period remained at 53 percent as the Group reported a quarterly consolidated operating income of $744 million and a consolidated expense of $651 million. After adjustment, the consolidated income and expenditure stood at $820 million and $575 million, respectively, with an adjusted operating margin of 59 percent.

Future expectations are high

As seen on the forecast section of the financial report, ICE is expecting a data revenue between $575 million and $580 million for the third quarter of 2020, with an expected GAAP operating expenses ranging from $651 million to $661 million and an adjusted operating expense between $580 million and $590 million.

“As we turn to the second half, we are well-positioned to achieve our growth objectives and are investing to strengthen our foundation for continued growth in the future,” Hill added.

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