Intercontinental Exchange Reports Solid Q2 2015 Results

Excluding acquisition-related expenses, Q2 2015 adjusted net income from continuing operations increased 27% YoY to $323 million.

Intercontinental Exchange (NYSE: ICE), a global network of exchanges and clearing houses, has reported its financial results for Q2 2015. For the quarter ending June 30, 2015, consolidated net income attributable to ICE yielded $283 million on $797 million consolidated revenues less transaction-based expenses, marking a drop from strong first quarter metrics. In addition, diluted earnings per share (EPS) in Q2 2015 were $2.54, down from $2.80 in Q1.

The exchange emphasized that the slightly lower figures could be attributed to amortization of acquisition-related intangibles, acquisition and integration related expenses and other adjustments that are not reflective of ICE’s cash operations or core business performance. Excluding these items, net of tax, Q2 2015 adjusted net income from continuing operations was $323 million and adjusted diluted EPS from continuing operations were $2.90, up 27% YoY.

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In terms of foreign exchange (FX), ICE also revealed its total FX volumes for July 2015, which included both futures and options for the U.S. Dollar (USD) Index and FX. ICE’s total FX volumes reached 4,252 contracts, up only 1% YoY.

Second quarter 2015 consolidated revenues, less transaction-based expenses, increased 6% to $797 million compared to the same period in 2014. Included in this amount are $448 million of transaction and clearing revenues, less transaction-based expenses.

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Taking a half-yearly perspective, ICE‘s consolidated revenues, less transaction-based expenses, in the first half increased 6% to $1.6 billion compared to the same period in 2014.

Finally, ICE’s diluted share count for the third quarter and full year 2015 is expected to be in the range of 110 million to 112 million weighted average shares outstanding, including share repurchases through July 2015, which is slightly less than expectations for Q2 2015.

In a statement, ICE Chairman and CEO Jeffrey C. Sprecher said: “Our focus on achieving our objectives resulted in another record quarter. This was driven by diverse contributions across commodities, cash equities, data services and listings. We are executing on many strategic growth initiatives across our derivatives and equity markets, and are focused on innovation to better serve our customers while delivering strong returns for our shareholders.”

“We again grew revenues and reduced expenses while taking a disciplined approach to investing in growth. All of this enabled us to grow adjusted earnings 27% year on year. We continue to generate strong cash flow and maintain a strong balance sheet with low leverage. We retired $1 billion in debt and returned $288 million to shareholders through dividends and share repurchases during the quarter,” added Scott Hill, ICE CFO, in an accompanying statement.

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