Intercontinental Exchange reports Q1 2017 GAAP diluted EPS of $0.84 on revenues of $1.2 billion

Intercontinental Exchange (NYSE: ICE), the global network of exchanges and clearing houses and provider of global data and listing services, today reported financial results for the first quarter of 2017.

For the quarter ended March 31, 2017:

  • consolidated net income attributable to ICE was $502 million on $1.2 billion of consolidated revenues less transaction-based expenses.
  • First quarter GAAP diluted earnings per share (EPS) were $0.84.
  • On an adjusted basis, net income was $441 million in the first quarter, and diluted EPS were $0.74.

Jeffrey C. Sprecher

The solid volume and open interest growth in our futures markets, together with strong results in our data and listings segment, demonstrates that we are holistically serving our customers on a global scale by leveraging our comprehensive trading, data and risk management solutions,” said ICE Chairman & CEO Jeffrey C. Sprecher. “Our progress in reorganizing and integrating our data services allows us to serve our customers in new ways as their needs evolve. In addition, our success in hosting virtually every recent major IPO at the NYSE, demonstrates how our unique market model continues to be the preferred model for listed companies.

Scott A. Hill, ICE CFO, added:

Our results were driven by executing in our core business while integrating our acquisitions. We generated operating cash flows of $611 million in the quarter, the second highest quarter in our history, which enabled us to significantly increase our share repurchases to $229 million and to increase our dividend 17% to $120 million, while continuing to invest in our growth initiatives. We are well positioned to continue to deliver strong returns to our shareholders in 2017 and beyond.

First Quarter 2017 GAAP Results

First quarter 2017 consolidated revenues, less transaction-based expenses, were $1.2 billion. Trading and clearing segment revenues, less transaction-based expenses, were $538 million in the first quarter 2017, down 6% compared to the prior first quarter. Data and listings segment revenues were $626 million in the first quarter of 2017, up 8% compared to the prior first quarter, including data services revenues of $520 million, up 9% and listings revenues of $106 million, up 2%.

Consolidated operating expenses were $582 million for the first quarter of 2017, including $12 million in Interactive Data transaction and integration expenses. Consolidated operating income for the first quarter was $582 million and operating margin was 50%. The effective tax rate for the first quarter was 30%.

Unrestricted cash was $360 million and outstanding debt was $6.2 billion as of March 31, 2017.

Financial Guidance

ICE’s second quarter 2017 GAAP operating expenses are expected to be in a range of $550 millionto $560 million and adjusted operating expenses are expected to be in a range of $485 million to $495 million.

ICE’s diluted share count for the second quarter and full year 2017 is expected to be in the range of 590 million to 600 million weighted average shares outstanding.

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