{"id":484132,"date":"2021-04-29T07:33:44","date_gmt":"2021-04-29T11:33:44","guid":{"rendered":"https:\/\/www.marketnewsdesk.com\/index.php\/intercontinental-exchange-reports-strong-first-quarter-2021\/"},"modified":"2021-04-29T07:33:44","modified_gmt":"2021-04-29T11:33:44","slug":"intercontinental-exchange-reports-strong-first-quarter-2021","status":"publish","type":"post","link":"https:\/\/www.marketnewsdesk.com\/index.php\/intercontinental-exchange-reports-strong-first-quarter-2021\/","title":{"rendered":"Intercontinental Exchange Reports Strong First Quarter 2021"},"content":{"rendered":"

<\/p>\n

Intercontinental Exchange Reports Strong First Quarter 2021<\/b><\/p>\n\n\n
\n
    \n
  • Record 1Q21 net revenues of $1.8 billion, +15% y\/y<\/b><\/li>\n<\/ul>\n
      \n
    • 1Q21 GAAP diluted EPS of $1.14<\/b><\/li>\n<\/ul>\n
        \n
      • 1Q21 adj. diluted EPS of $1.34, +7% y\/y<\/b><\/li>\n<\/ul>\n
          \n
        • Record 1Q21 operating income of $892 million; record adjusted operating income of $1.1 billion, +11% y\/y<\/b><\/li>\n<\/ul>\n
            \n
          • 1Q21 operating margin of 50%; adj. operating margin of 59%<\/b><\/li>\n<\/ul>\n
              \n
            • Q2 2021 pre-tax gain of $1.23 billion related to the full divestment of stake in Coinbase<\/b><\/li>\n<\/ul>\n
                \n
              • Launched ICE Futures Abu Dhabi on March 29, 2021<\/b><\/li>\n<\/ul>\n<\/td>\n
\n

\n\u00a0\n<\/p>\n<\/td>\n

Jeffrey C. Sprecher<\/b>,
ICE Chairman & Chief Executive Officer<\/i>, said<\/i>,
“We are pleased to report strong first quarter results that extend our track-record of growth. As we emerge from the COVID-19 pandemic, never have our digital networks proven more needed and resilient. We are grateful to our customers that continue to rely on our technology, data and market infrastructure, and we remain focused on innovating across asset classes to drive greater efficiency and transparency.”<\/i><\/b><\/td>\n<\/tr>\n<\/table>\n

\nIntercontinental Exchange (NYSE: ICE), a leading global provider of data, technology and market infrastructure, today reported financial results for the first quarter of 2021. For the quarter ended March 31, 2021, consolidated net income attributable to ICE was $646 million on $1.8 billion of consolidated revenues, less transaction-based expenses. First quarter GAAP diluted earnings per share (EPS) were $1.14. Adjusted net income attributable to ICE was $758 million in the first quarter and adjusted diluted EPS were $1.34. Please refer to the reconciliation of non-GAAP financial measures included in this press release for more information on our adjusted operating expenses, adjusted operating income, adjusted operating margin, adjusted net income, adjusted diluted EPS and free cash flow.\n<\/p>\n

\nScott A. Hill, ICE Chief Financial Officer, added: “In the first quarter, we once again grew revenues, operating income and cash flows. This performance reflects a strong balance of compounding recurring revenues and diverse transaction-based revenues. We are excited about the many growth opportunities that lie ahead, and we remain focused on prudent capital management to deliver value to our stockholders.”\n<\/p>\n

First Quarter 2021 Business Highlights<\/b><\/p>\n\n\n\n\n\n\n\n
\n

$ (in millions)<\/span><\/p>\n<\/td>\n

\n

Net
\n
Revenue<\/span><\/b><\/p>\n<\/td>\n

\n

Op
\n
Margin<\/span><\/b><\/p>\n<\/td>\n

\n

Adj Op
\n
Margin<\/span><\/b><\/p>\n<\/td>\n<\/tr>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

1Q21<\/b><\/p>\n<\/td>\n<\/tr>\n

\n

\nExchanges\n<\/p>\n<\/td>\n

\n

\n$974\n<\/p>\n<\/td>\n

\n

\n67%\n<\/p>\n<\/td>\n

\n

\n69%\n<\/p>\n<\/td>\n<\/tr>\n

\n

\nFixed Income and Data Services\n<\/p>\n<\/td>\n

\n

\n$468\n<\/p>\n<\/td>\n

\n

\n28%\n<\/p>\n<\/td>\n

\n

\n38%\n<\/p>\n<\/td>\n<\/tr>\n

\n

\nMortgage Technology\n<\/p>\n<\/td>\n

\n

\n$355\n<\/p>\n<\/td>\n

\n

\n30%\n<\/p>\n<\/td>\n

\n

\n60%\n<\/p>\n<\/td>\n<\/tr>\n

\n

Consolidated<\/b><\/p>\n<\/td>\n

\n

$1,797<\/b><\/p>\n<\/td>\n

\n

50%<\/b><\/p>\n<\/td>\n

\n

59%<\/b><\/p>\n<\/td>\n<\/tr>\n<\/table>\n

\nFirst quarter consolidated net revenues were $1.8 billion up 15% year-over-year including exchange net revenues of $974 million, fixed income and data services revenues of $468 million and mortgage technology revenues of $355 million. Consolidated operating expenses were $905 million for the first quarter of 2021. On an adjusted basis, consolidated operating expenses were $729 million. Consolidated operating income for the first quarter was $892 million and the operating margin was 50%. On an adjusted basis, consolidated operating income for the first quarter was $1.1 billion and the adjusted operating margin was 59%.\n<\/p>\n

Exchanges Segment Results<\/b><\/p>\n

\nFirst quarter exchange net revenues were $974 million. Exchange operating expenses were $321 million and on an adjusted basis, were $298 million in the first quarter. Segment operating income for the first quarter was $653 million and the operating margin was 67%. On an adjusted basis, operating income was $676 million and the adjusted operating margin was 69%.\n<\/p>\n\n\n\n\n\n\n\n\n\n\n\n
\n

$ (in millions)<\/span><\/p>\n<\/td>\n

\n

1Q21<\/span><\/b><\/p>\n<\/td>\n

\n

1Q20<\/span><\/b><\/p>\n<\/td>\n

\n

% Chg<\/span><\/b><\/p>\n<\/td>\n<\/tr>\n

\n

\nRevenue, net:\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n<\/tr>\n

\n

\nEnergy\n<\/p>\n<\/td>\n

\n

\n$310\n<\/p>\n<\/td>\n

\n

\n$353\n<\/p>\n<\/td>\n

\n

(12)%<\/b><\/p>\n<\/td>\n<\/tr>\n

\n

\nAgs and Metals\n<\/p>\n<\/td>\n

\n

\n59\n<\/p>\n<\/td>\n

\n

\n84\n<\/p>\n<\/td>\n

\n

(29)%<\/b><\/p>\n<\/td>\n<\/tr>\n

\n

\nFinancials(1)<\/sup><\/p>\n<\/td>\n

\n

\n105\n<\/p>\n<\/td>\n

\n

\n123\n<\/p>\n<\/td>\n

\n

(14)%<\/b><\/p>\n<\/td>\n<\/tr>\n

\n

\nCash Equities and Equity Options\n<\/p>\n<\/td>\n

\n

\n102\n<\/p>\n<\/td>\n

\n

\n113\n<\/p>\n<\/td>\n

\n

(10)%<\/b><\/p>\n<\/td>\n<\/tr>\n

\n

\nOTC and Other(2)<\/sup><\/p>\n<\/td>\n

\n

\n77\n<\/p>\n<\/td>\n

\n

\n71\n<\/p>\n<\/td>\n

\n

9%<\/b><\/p>\n<\/td>\n<\/tr>\n

\n

\nData and Connectivity Services\n<\/p>\n<\/td>\n

\n

\n207\n<\/p>\n<\/td>\n

\n

\n193\n<\/p>\n<\/td>\n

\n

7%<\/b><\/p>\n<\/td>\n<\/tr>\n

\n

\nListings\n<\/p>\n<\/td>\n

\n

\n114\n<\/p>\n<\/td>\n

\n

\n112\n<\/p>\n<\/td>\n

\n

2%<\/b><\/p>\n<\/td>\n<\/tr>\n

\n

Segment Revenue<\/b><\/p>\n<\/td>\n

\n

$974<\/b><\/p>\n<\/td>\n

\n

$1,049<\/b><\/p>\n<\/td>\n

\n

(7)%<\/b><\/p>\n<\/td>\n<\/tr>\n<\/table>\n\n\n\n
\n\n\n

\n(1) Financials include interest rates and other financial futures and options.\n<\/p>\n<\/td>\n<\/tr>\n

\n\n\n

\n(2) OTC & other includes physical energy, interest income on certain clearing margin deposits, regulatory penalties and fines, fees for use of our facilities, regulatory fees charged to member organizations of our U.S. securities exchanges, designated market maker service fees, technology development fees, exchange member fees, and agriculture grading and certification fees.\n<\/p>\n<\/td>\n<\/tr>\n<\/table>\n

Fixed Income and Data Services Segment Results<\/b><\/p>\n

\nFirst quarter fixed income and data services revenues were $468 million. Fixed income and data services operating expenses were $335 million and adjusted operating expenses were $290 million in the first quarter. Segment operating income for the first quarter was $133 million and the operating margin was 28%. On an adjusted basis, operating income was $178 million and the adjusted operating margin was 38%.\n<\/p>\n\n\n\n\n\n\n\n\n
\n

\n$ (in millions)\n<\/p>\n<\/td>\n

\n

1Q21<\/b><\/p>\n<\/td>\n

\n

1Q20<\/b><\/p>\n<\/td>\n

\n

% Chg<\/b><\/p>\n<\/td>\n

\n

Const
\n
Curr(1)<\/sup><\/b><\/p>\n<\/td>\n<\/tr>\n

\n

\nRevenue:\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n<\/tr>\n

\n

\nFixed Income Execution\n<\/p>\n<\/td>\n

\n

\n$14\n<\/p>\n<\/td>\n

\n

\n$21\n<\/p>\n<\/td>\n

\n

(32)%<\/b><\/p>\n<\/td>\n

\n

(32)%<\/b><\/p>\n<\/td>\n<\/tr>\n

\n

\nCDS Clearing\n<\/p>\n<\/td>\n

\n

\n55\n<\/p>\n<\/td>\n

\n

\n72\n<\/p>\n<\/td>\n

\n

(25)%<\/b><\/p>\n<\/td>\n

\n

(26)%<\/b><\/p>\n<\/td>\n<\/tr>\n

\n

\nFixed Income Data and Analytics\n<\/p>\n<\/td>\n

\n

\n264\n<\/p>\n<\/td>\n

\n

\n245\n<\/p>\n<\/td>\n

\n

8%<\/b><\/p>\n<\/td>\n

\n

7%<\/b><\/p>\n<\/td>\n<\/tr>\n

\n

\nOther Data and Network Services\n<\/p>\n<\/td>\n

\n

\n135\n<\/p>\n<\/td>\n

\n

\n126\n<\/p>\n<\/td>\n

\n

8%<\/b><\/p>\n<\/td>\n

\n

6%<\/b><\/p>\n<\/td>\n<\/tr>\n

\n

Segment Revenue<\/b><\/p>\n<\/td>\n

\n

$468<\/b><\/p>\n<\/td>\n

\n

$464<\/b><\/p>\n<\/td>\n

\n

1%<\/b><\/p>\n<\/td>\n

\n

\u2014<\/b><\/p>\n<\/td>\n<\/tr>\n<\/table>\n\n\n
\n\n

\n(1) Net revenues in constant currency are calculated holding both the pound sterling and euro at the average exchange rate from 1Q20, 1.2794 and 1.1025, respectively\n<\/p>\n<\/td>\n

<\/tr>\n<\/table>\n

Mortgage Technology Segment Results<\/b><\/p>\n

\nFirst quarter mortgage technology revenues were $355 million. Mortgage technology operating expenses were $249 million and adjusted operating expenses were $141 million in the first quarter. Segment operating income for the first quarter was $106 million and the operating margin was 30%. On an adjusted basis, operating income was $214 million and the adjusted operating margin was 60%.\n<\/p>\n\n\n\n\n\n\n\n\n
\n

\n$ (in millions)\n<\/p>\n<\/td>\n

\n

1Q21<\/b><\/p>\n<\/td>\n

\n

1Q20<\/b><\/p>\n<\/td>\n

\n

% Chg<\/b><\/p>\n<\/td>\n<\/tr>\n

\n

\nRevenue:\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n<\/tr>\n

\n

\nOrigination Technology(1)<\/sup><\/p>\n<\/td>\n

\n

\n$254\n<\/p>\n<\/td>\n

\n

\n$\u2014\n<\/p>\n<\/td>\n

\n

n\/a<\/b><\/p>\n<\/td>\n<\/tr>\n

\n

\nClosing Solutions(1)<\/sup><\/p>\n<\/td>\n

\n

\n70\n<\/p>\n<\/td>\n

\n

\n44\n<\/p>\n<\/td>\n

\n

61%<\/b><\/p>\n<\/td>\n<\/tr>\n

\n

\nData and Analytics\n<\/p>\n<\/td>\n

\n

\n18\n<\/p>\n<\/td>\n

\n

\n\u2014\n<\/p>\n<\/td>\n

\n

n\/a<\/b><\/p>\n<\/td>\n<\/tr>\n

\n

\nOther\n<\/p>\n<\/td>\n

\n

\n13\n<\/p>\n<\/td>\n

\n

\n2\n<\/p>\n<\/td>\n

\n

614%<\/b><\/p>\n<\/td>\n<\/tr>\n

\n

Segment Revenue<\/b><\/p>\n<\/td>\n

\n

$355<\/b><\/p>\n<\/td>\n

\n

$46<\/b><\/p>\n<\/td>\n

\n

680%<\/b><\/p>\n<\/td>\n<\/tr>\n<\/table>\n\n\n
\n\n\n

\n(1) Origination technology revenues include those related to our ICE Mortgage Technology network (previously reported in closing solutions revenues) and closing solutions revenues now include registration revenues related to MERS (previously reported in other revenues).\n<\/p>\n<\/td>\n<\/tr>\n<\/table>\n

Other Matters<\/b><\/p>\n