Intercontinental Exchange Reports Solid Q2 2016 Results

ICE’s consolidated operating expenses had a substantial jump of 57.5% YoY in the second quarter.

Intercontinental Exchange (NYSE:ICE), a global network of exchanges and clearing houses, has reported financial results for the second quarter ending June 30, 2016, according to an ICE statement.

During Q2 2016, ICE unveiled the adjusted net income attributable to ICE at $411 million on $1.1 billion of consolidated revenues less transaction-based expenses– this represents a gain of 27.2% percent YoY from only $323 million in Q2 2015. Furthermore, ICE reported diluted earnings per share (EPS) of $3.43 in Q2 2016 on a GAAP basis, a jump of 18.3% YoY from $2.90 in Q2 2015.

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Taking a half-yearly perspective, ICE‘s total revenues, less transaction-based expenses, in the six months ending June 30 increased 36.6% to $2,283 billion compared to the same period in 2015.

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Additionally, operating income was also on the uptick in Q2 2016, with ICE orchestrating a figure of $551 million, compared to just $430 million in Q2 2015, good for a jump of 28.1% YoY.

Other points of emphasis included:

  • Q2 2016 consolidated revenues, less transaction-based expenses were $1,129 billion, up 41.0% from just $797 billion in Q2 2015. The figure included $265 million in revenues from Interactive Data and Trayport
  • Trading and clearing segment revenues were $527 million, with transaction and clearing revenues of $485 million in Q2 2016, up 9% compared to the prior second quarter in 2015
  • Consolidated operating expenses were $578 million for the Q2 2016, a substantial jump of 57.5% YoY from $367 in Q2 2015.
  • Finally, consolidated cash flows from operations were $1.1 billion for the first six months of 2016, up 43% compared to H1 2015.

In a statement, ICE Chairman and CEO Jeffrey C. Sprecher said: “Our performance in the first half of 2016 extends our track record of consistent growth and execution. Revenues grew across both our trading and clearing and data and listings business segments and we accelerated expense synergies and reduced our 2016 expense guidance. As a result, we delivered double-digit earnings growth in the first half of 2016 and are positioned to continue delivering double-digit earnings growth even as we invest to build our business and generate industry leading returns.”

“We generated over $1 billion of operating cash flows in the first six months of the year, which enabled us to reduce our debt by nearly $800 million and to return over $200 million to shareholders through dividends. In addition, our Board approved pursuing a 5-for-1 stock split to enhance trading efficiency and accessibility for all shareholders as well as a new $1 billion share repurchase program that supports our ability to consider additional capital returns to our shareholders,” added Scott Hill, ICE CFO in an accompanying statement.

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