{"id":519760,"date":"2021-07-29T07:33:37","date_gmt":"2021-07-29T11:33:37","guid":{"rendered":"https:\/\/www.marketnewsdesk.com\/index.php\/intercontinental-exchange-reports-strong-second-quarter-2021\/"},"modified":"2021-07-29T07:33:37","modified_gmt":"2021-07-29T11:33:37","slug":"intercontinental-exchange-reports-strong-second-quarter-2021","status":"publish","type":"post","link":"https:\/\/www.marketnewsdesk.com\/index.php\/intercontinental-exchange-reports-strong-second-quarter-2021\/","title":{"rendered":"Intercontinental Exchange Reports Strong Second Quarter 2021"},"content":{"rendered":"

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Intercontinental Exchange Reports Strong Second Quarter 2021<\/b><\/p>\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n
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Jeffrey C. Sprecher<\/b>,\n<\/p>\n

ICE Chairman & Chief Executive Officer<\/i>, said<\/i>,\n<\/p>\n

“We are pleased to report our second quarter results that extend our track record of growth. Amidst a dynamic macroeconomic backdrop, customers continue to access our networks to manage risk, consume data and drive workflow efficiencies. As we look to the second half of the year and beyond, we will continue to leverage our data, technology & network expertise to deliver innovative solutions for our customers and drive growth for our stockholders.” <\/i><\/b><\/p>\n<\/td>\n<\/tr>\n

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  • 2Q21 net revenues of $1.7 billion, +22% y\/y<\/b><\/li>\n<\/ul>\n<\/td>\n
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  • 2Q21 GAAP diluted EPS of $2.22, +134% y\/y<\/b><\/li>\n<\/ul>\n<\/td>\n
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  • 2Q21 pre-tax gain of $1.23 billion related to the full divestment of stake in Coinbase<\/b><\/li>\n<\/ul>\n<\/td>\n
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  • 2Q21 adj. diluted EPS of $1.16, +12% y\/y<\/b><\/li>\n<\/ul>\n<\/td>\n
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  • 2Q21 operating income of $799 million, +7% y\/y; adjusted operating income of $963 million, +17% y\/y<\/b><\/li>\n<\/ul>\n<\/td>\n
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  • 2Q21 operating margin of 47%; adj. operating margin of 56%<\/b><\/li>\n<\/ul>\n<\/td>\n
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\nIntercontinental Exchange (NYSE: ICE), a leading global provider of data, technology and market infrastructure, today reported financial results for the second quarter of 2021. For the quarter ended June 30, 2021, consolidated net income attributable to ICE was $1.3 billion on $1.7 billion of consolidated revenues, less transaction-based expenses. Second quarter GAAP diluted earnings per share (EPS) were $2.22. Adjusted net income attributable to ICE was $657 million in the second quarter and adjusted diluted EPS were $1.16. 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

\nWarren Gardiner, ICE Chief Financial Officer, added: “In the second quarter, we once again grew revenues, operating income, earnings and cash flow. Our performance is a testament to the power of our diverse business model, which, through an array of macroeconomic environments, continues to deliver consistent and compounding growth for our stockholders.”\n<\/p>\n

Second Quarter 2021 Business Highlights<\/b><\/p>\n\n\n\n\n\n\n\n
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\n$ (in millions)\n<\/p>\n<\/td>\n

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

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

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

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

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2Q21<\/b><\/p>\n<\/td>\n<\/tr>\n

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

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\n$909\n<\/p>\n<\/td>\n

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\n64%\n<\/p>\n<\/td>\n

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

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

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\n$458\n<\/p>\n<\/td>\n

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\n26%\n<\/p>\n<\/td>\n

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\n36%\n<\/p>\n<\/td>\n<\/tr>\n

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

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\n$340\n<\/p>\n<\/td>\n

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

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\n56%\n<\/p>\n<\/td>\n<\/tr>\n

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

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$1,707<\/b><\/p>\n<\/td>\n

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47%<\/b><\/p>\n<\/td>\n

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56%<\/b><\/p>\n<\/td>\n<\/tr>\n<\/table>\n

\nSecond quarter consolidated net revenues were $1.7 billion, up 22% year-over-year including exchange net revenues of $909 million, fixed income and data services revenues of $458 million and mortgage technology revenues of $340 million. Consolidated operating expenses were $908 million for the second quarter of 2021. On an adjusted basis, consolidated operating expenses were $744 million. Consolidated operating income for the second quarter was $799 million and the operating margin was 47%. On an adjusted basis, consolidated operating income for the second quarter was $963 million and the adjusted operating margin was 56%.\n<\/p>\n

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

\nSecond quarter exchange net revenues were $909 million. Exchange operating expenses were $326 million and on an adjusted basis, were $302 million in the second quarter. Segment operating income for the second quarter was $583 million and the operating margin was 64%. On an adjusted basis, operating income was $607 million and the adjusted operating margin was 67%.\n<\/p>\n\n\n\n\n\n\n\n\n\n\n\n
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\n$ (in millions)\n<\/p>\n<\/td>\n

\n

2Q21<\/b><\/p>\n<\/td>\n

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2Q20<\/b><\/p>\n<\/td>\n

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

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

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

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

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

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

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\n$274\n<\/p>\n<\/td>\n

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\n$276\n<\/p>\n<\/td>\n

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

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

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\n62\n<\/p>\n<\/td>\n

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

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3%<\/b><\/p>\n<\/td>\n<\/tr>\n

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

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\n83\n<\/p>\n<\/td>\n

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\n76\n<\/p>\n<\/td>\n

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

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

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\n85\n<\/p>\n<\/td>\n

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\n101\n<\/p>\n<\/td>\n

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

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

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\n78\n<\/p>\n<\/td>\n

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\n75\n<\/p>\n<\/td>\n

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4%<\/b><\/p>\n<\/td>\n<\/tr>\n

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

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\n208\n<\/p>\n<\/td>\n

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\n195\n<\/p>\n<\/td>\n

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

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

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\n119\n<\/p>\n<\/td>\n

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\n111\n<\/p>\n<\/td>\n

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

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

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$909<\/b><\/p>\n<\/td>\n

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$893<\/b><\/p>\n<\/td>\n

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

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

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

\nSecond quarter fixed income and data services revenues were $458 million. Fixed income and data services operating expenses were $337 million and adjusted operating expenses were $291 million in the second quarter. Segment operating income for the second quarter was $121 million and the operating margin was 26%. On an adjusted basis, operating income was $167 million and the adjusted operating margin was 36%.\n<\/p>\n\n\n\n\n\n\n\n\n
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\n$ (in millions)\n<\/p>\n<\/td>\n

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2Q21<\/b><\/p>\n<\/td>\n

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2Q20<\/b><\/p>\n<\/td>\n

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

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

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

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

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

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

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

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\n$13\n<\/p>\n<\/td>\n

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\n$20\n<\/p>\n<\/td>\n

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

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

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

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

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\n47\n<\/p>\n<\/td>\n

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

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

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

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\n268\n<\/p>\n<\/td>\n

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\n252\n<\/p>\n<\/td>\n

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

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5%<\/b><\/p>\n<\/td>\n<\/tr>\n

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

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\n139\n<\/p>\n<\/td>\n

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\n127\n<\/p>\n<\/td>\n

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

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

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

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$458<\/b><\/p>\n<\/td>\n

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$446<\/b><\/p>\n<\/td>\n

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3%<\/b><\/p>\n<\/td>\n

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

\n(1) Net revenues in constant currency are calculated holding both the pound sterling and euro at the average exchange rate from 2Q20, 1.2413 and 1.1011, respectively.\n<\/p>\n

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

\nSecond quarter mortgage technology revenues were $340 million. Mortgage technology operating expenses were $245 million and adjusted operating expenses were $151 million in the second quarter. Segment operating income for the second quarter was $95 million and the operating margin was 28%. On an adjusted basis, operating income was $189 million and the adjusted operating margin was 56%.\n<\/p>\n\n\n\n\n\n\n\n\n
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\n$ (in millions)\n<\/p>\n<\/td>\n

\n

2Q21<\/b><\/p>\n<\/td>\n

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2Q20<\/b><\/p>\n<\/td>\n

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

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

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

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

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

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

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\n$241\n<\/p>\n<\/td>\n

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

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

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\nClosing Solutions\n<\/p>\n<\/td>\n

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

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\n54\n<\/p>\n<\/td>\n

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

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

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

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

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

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

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\n12\n<\/p>\n<\/td>\n

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

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

\n

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

\n

$340<\/b><\/p>\n<\/td>\n

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$56<\/b><\/p>\n<\/td>\n

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

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