The ICE is Hot as the IntercontinentalExchange Posts Record Earnings in 2013

The IntercontinentalExchange has posted its Q4 and full-year 2013 financial figures. The operator multi-asset exchange trading and clearing houses reported 2013 revenues of $1.67 billion dollar, and adjusted net income of $646 million, higher by 23% and 16% from 2012. For the quarter, the ICE saw revenues of $612 million and consolidated income of $163 million. Factoring in expenses related to the ICE’s purchase of the NYSE Euronext, the firm posted a consolidated net loss of $176 million.

The adjusted income and revenue figures were both records and capped off a year that saw the exchange complete acquisitions of the NYSE Euronext and the ICE Endex. Following the mergers, the ICE expanded its asset classes supported from six to nine. Commenting on the year, ICE Chairman and CEO Jeffrey C. Sprecher stated in the company’s public press release that, “We began the year with the objectives of providing more products and services to our customers, driving growth and returns for our shareholders, and successfully completing key strategic transactions. We achieved these goals while producing record financial results.”

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After announcing its intentions to acquire the NYSE Euronext at the end of 2012, expectations were that the ICE’s focus would be on merging its derivatives products with that of the LIFFE. As such, for shareholders, 2014 will be focused on how the ICE is able to leverage its trading products across a wider exchange membership audience. Part of the equation is expected to be the consolidation of multiple assets of products within one platform. In terms of FX, despite the ICE’s strong Dollar Index futures and options products, they have yet to attract much interest in other currencies. Given its small contribution, in the run up to finalizing the NYSE Euronext merger, FX was not given much attention by either stock analysts or ICE management. While probably still not a main focus for 2014, over the longer term, due to an existing wide array of available FX products at the ICE, the asset class could see more attention in marketing it in the future.