NYSE-owner ICE profit beats as volatility drives up trading volumes
Reuters
Published Aug 04, 2022 07:35AM ET
Updated Aug 04, 2022 11:25AM ET
By Manya Saini
(Reuters) - Intercontinental Exchange (NYSE:ICE) beat Wall Street estimates for second-quarter profit on Thursday, as the New York Stock Exchange's owner benefited from choppy global markets that led to a surge in trading volumes, sending its shares up over 4%.
Investors actively rejigged their portfolios to hedge against potential risks amid rapidly rising rates and decades-high inflation.
The volatility and uncertainty in energy markets triggered by the war in Ukraine drove global gas trading volumes 31% higher so far this year, sparking a 49% growth in the exchange's North American gas business in the second quarter.
GRAPHIC: ICE Exchange - Total Futures & Options ADV (https://graphics.reuters.com/ICE-RESULTS/akpezkzdrvr/chart.png)
Atlanta-based ICE added that it expects heightened concerns tied to the war and the reshaping of the global energy supply chain to also drive demand for its risk management tools.
"We are well positioned to benefit from both the near-term volatility and the long-term secular growth trends occurring across these markets," said Benjamin Jackson, ICE's president, in a call with analysts.
On an adjusted basis, ICE net income rose 12.4% to $739 million, or $1.32 per share, in the quarter ended June 30. Analysts on average were expecting the company to report a profit of $1.27 per share, according to Refinitiv IBES data.
ICE, which runs futures and equities exchanges as well as clearing houses, data services and a mortgage software business, saw revenue from its biggest exchanges segment rise 20% to $1.6 billion during the quarter.
The results round out an upbeat second-quarter for U.S. exchanges, as market turbulence drove up trading volumes.
Total revenue, excluding transaction-based expenses, came in at $1.81 billion, above analysts estimates of $1.80 billion.
Through the quarter, ICE said it repurchased $632 million of its common stock and paid $427 million in dividends to shareholders.
In line with peers, the exchange saw expenses climb 4.1% to $945 million, above its previous outlook of $900 million to $910 million.
Get The News You Want
Written By: Reuters
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.