ICE Reports Uptick in Q3 Revenues Despite Market Uncertainty

This is the 22nd consecutive quarter that has experienced a YoY growth in revenues.

Intercontinental Exchange (ICE), a global network of exchanges and clearinghouses, announced its third quarter results for 2018 on Wednesday. Despite uncertain market conditions, the company still managed to see an uptick in revenue – marking the 22nd consecutive quarter of year-over-year revenue growth.

In the third quarter, which ended on September 30, 2018, ICE achieved consolidated revenue of $1.2 billion. This figure is comprised of data and listings revenue and trading and clearing revenue, representing an overall increase of five percent year-on-year.

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Revenue for ICE’s data and listing segment was $642 million in the third quarter. This is up – but not by much – on an annual basis, climbing by three percent from last year’s revenue of $623 million.

For the trading and clearing segment, revenue came in at $558 million. When compared to the same time period last year, which experienced a revenue of $523 million, this is an increase of three percent.

Jeffrey Sprecher, ICE, Intercontinental Exchange
Jeffrey Sprecher
Source: Intercontinental Exchange

Commenting on the results, ICE Chairman & Chief Executive Officer, Jeffrey Sprecher said: “our third quarter performance reflected strength across our futures, cash equities, listings and data services businesses, marking the 22nd consecutive quarter of year-over-year revenue growth.

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“Against an uncertain regulatory and political backdrop, we are focused on driving innovation, delivering growth and helping to serve our customers’ risk management needs.”

Breaking Down Trading and Clearing Revenue For ICE

In the third quarter of 2018, energy futures and options revenue were flat on a yearly basis. The rate per contract (RPC) was up by seven percent year-on-year but this was offset by a fall in average daily volume (ADV) of six percent.

Ags and metals futures and options revenue during the quarter was up, jumping by 17 percent when compared to the same quarter of 2017. This uptick was largely driven by a 16 percent increase in ADV and a 1 percent increase in RPC.

Revenue for US cash equities and equity options also experienced a small boost, increasing by 8 percent year-on-year. This was largely thanks to a 31 percent increase in the ADV of equity options, as well as a seven percent jump in the ADV of US cash equities.

Over-the-counter (OTC) and other transaction revenues were up by 40 percent in the third quarter of 2018. According to the statement, this was due to a seven percent increase in CDS clearing revenue and the addition of BondPoint and TMC Bonds.

Scott Hill, ICE, Intercontinental Exchange
Scott Hill
Source: Intercontinental Exchange

Scott Hill, ICE Chief Financial Officer, added: “through the end of the third quarter, we have grown revenues and earnings, generated record operating cash flows and returned nearly $1.5 billion to stockholders – more than any full year in our history. As we approach the end of 2018, we remain focused on our growth initiatives and value creation.”

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