Intercontinental Exchange Posts Solid Jump in Q2 Net Income

Intercontinental Exchange (ICE), the operator of the New York Stock Exchange, has published its financial results for the second quarter of 2020, ending on June 20, showing a consolidated net income of $523 million, a 10.8 percent jump from $462 million obtained in the equivalent quarter of the previous year.

The adjusted net income for the Group stood at $584 million for the quarter, with an adjusted diluted EPS of $1.07.

ICE operates several global exchanges, clearinghouses, and also offers data services. The total consolidated net revenues for the quarter coming from all its businesses surged 8 percent year-on-year touching $1.4 billion.

“In the first half, we built on our track record of consistent revenue growth, expense discipline, and earnings per share growth. This performance enabled us to return over $1.4 billion of capital to our stockholders through dividends and our stock repurchase program,” ICE CFO Scott A. Hill said in a statement.

Breaking down the services of the Group, $574 million were generated from the data-based services and $111 million from listings. Form its trading and clearing service, ICE generated $710 million, a yearly uptick of 12 percent.

The consolidated operating margin for the period remained at 53 percent as the Group reported a quarterly consolidated operating income of $744 million and a consolidated expense of $651 million. After adjustment, the consolidated income and expenditure stood at $820 million and $575 million respectively, with an adjusted operating margin of 59 percent.

Future expectations are high

As seen on the forecast section of the financial report, ICE is expecting a data revenue between $575 million and $580 million for the third quarter of 2020, with an expected GAAP operating expenses ranging from $651 million to $661 million and an adjusted operating expense between $580 million and $590 million.

“As we turn to the second half, we are well-positioned to achieve our growth objectives and are investing to strengthen our foundation for continued growth in the future,” Hill added.