November 5, 2013 / 12:47 PM / 5 years ago

IntercontinentalExchange third-quarter profit rises 8 percent

(Reuters) - IntercontinentalExchange Inc (ICE.N), which is awaiting final approval for its purchase of NYSE Euronext NYX.N, reported an 8 percent rise in third-quarter profit on Tuesday, helped by higher market data revenues.

Jeffrey Sprecher, founder and chief executive officer of IntercontinentalExchange (ICE), speaks at the Sandler O'Neill + Partners, L.P. Global Exchange and Brokerage Conference in New York June 7, 2013. REUTERS/Brendan McDermid

Net income attributable to ICE, the Atlanta-based derivatives exchange and clearing house operator, was $141.3 million, or $1.92 a diluted share, up from $131.1 million, or $1.79 a diluted share, a year earlier.

Excluding costs related to the more than $10 billion NYSE deal and other one-time items, earnings were $1.97 per share, topping the average analyst estimate of $1.83 per share.

Revenue rose 5 percent to $337.9 million, with market data revenues up 12 percent to $40.2 million.

Transaction and clearing fee revenue was almost flat at $279.9 million. Revenue from its credit default swap trade execution, processing and clearing business increased 15 percent to $38 million.

Futures average daily volume fell 1 percent in the quarter to 3.1 million contracts.

ICE said in December it would buy the operator of the New York Stock Exchange in a deal that would give it control of Liffe, Europe’s second-largest derivatives market, to help expand into the interest rate futures business.

Shareholders of both ICE and NYSE have signed off on the deal, along with the European Commission and the U.S. Securities and Exchange Commission. Approval is still needed from national regulators in Europe.

ICE’s board declared a quarterly cash dividend of an aggregate $75 million for the fourth quarter, contingent on the closing of the NYSE deal.

ICE said it expects 2013 adjusted consolidated expenses to increase by 1 percent to 2 percent, versus its prior forecast of 2 percent to 3 percent.

Earlier Tuesday, NYSE reported that third-quarter profit rose 21 percent, helped by higher revenues at its cash listings business.

Reporting by John McCrank in New York; Editing by Jeffrey Benkoe

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