ICE profit rises 7 percent on energy futures, CDS clearing
By John McCrank
NEW YORK (Reuters) - IntercontinentalExchange Inc (ICE.N: Quote), which is in the process of buying NYSE Euronext NYX.N for $8.2 billion, reported a 7 percent rise in second-quarter profit on Tuesday, helped by higher energy futures volumes and credit default swap clearing.
Net income attributable to the Atlanta-based derivatives exchange and clearing house operator was $153.3 million, or $2.09 a share, up from $143.2 million, or $1.95 a share, a year earlier.
Excluding costs involving the NYSE deal and other one-time items, earnings were $2.19 per share, topping analysts' average estimate by 4 cents, according to Thomson Reuters I/B/E/S.
Revenue rose 6 percent to $371.6 million as futures average daily volume increased 3 percent to 3.5 million contracts.
Transaction and clearing fee revenue rose 4 percent to $319 million.
Revenue from credit default swap trade execution, processing and clearing business was up 11 percent to $40 million. Market data revenue gained 8 percent to $40 million.
Operating expenses climbed 8 percent to $147 million.
ICE said it expects 2013 adjusted consolidated expenses to increase by 2 percent to 3 percent, versus prior guidance of 3 percent to 5 percent. Continued...