Intercontinental Exchange (NYSE:ICE), a global network of exchanges and clearing houses, has reported financial results for the third quarter ending September 30, 2016, according to an ICE statement.
During Q3 2016, ICE unveiled the adjusted net income attributable to ICE at $344 million on $1.1 billion of consolidated revenues less transaction-based expenses– this represents a gain of 12.4% percent YoY from only $306 million in Q3 2015. Furthermore, ICE reported diluted earnings per share (EPS) of $2.86 in Q3 2016 on a GAAP basis, a jump of 3.6% YoY from $2.76 in Q3 2015.
Taking a year-to-date perspective, ICE‘s total revenues, less transaction-based expenses, in the nine months ending September 30 increased 29.2% to $4.474 billion compared to $3.463 billion in the same period of 2015.
Additionally, operating income was also on the uptick in Q3 2016, with ICE orchestrating a figure of $474 million, compared to just $440 million in Q3 2015, good for a jump of 7.72% YoY.
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Other points of emphasis
The company posted $1,416 billion in Q3 2016 consolidated revenues, up 41.0% from just $1,187 billion in Q3 2015. The figure included $261 million in revenues from Interactive Data and Trayport. In addition, trading and clearing segment revenues at ICE amounted to $483 million in the last quarter, with transaction and clearing revenues of $439 million, a loss of -5.0 percent YoY.
ICE completed the last three months through September with consolidated operating expenses at $604 million, a substantial jump of 60.6% YoY from $376 in Q3 2015.
During the reported period, consolidated cash flows from operations were also on the uptick, with ICE orchestrating a figure of $1.5 billion for the first nine months of 2016, up 69% compared to the prior nine months.
In a statement ICE Chairman and CEO Jeffrey C. Sprecher said: “In 2016, we’ve grown revenue, margins and earnings while investing in our long term growth. Our double digit earnings growth year to date is driven by serving the rising demand for risk management, data and for capital efficient solutions in the US, Europe and Asia as markets evolve, driven by regulation, automation and innovation.”
Scott A. Hill, CFO of ICE, added: “We generated $1.5 billion of operating cash flows through September, which enabled us to reduce our debt by $1 billion while growing our dividend compared to 2015, and we resumed our share repurchases in October of 2016. Our strategic approach to investing, ability to consistently generate operating efficiencies and disciplined allocation of capital has allowed us to generate growth in earnings and cash, diversify our business model, and deliver solid returns to our investors.”