IntercontinentalExchange Profit Tops Estimates- Update

(RTTNews) - Global markets operator IntercontinentalExchange Inc. (ICE), Tuesday reported an eight percent increase in third-quarter profit, driven by market-data and clearing revenues, partly offset by acquisition costs and lower futures-trading volume. The results for the quarter topped Wall Street estimates.

ICE, which is buying rival NYSE Euronext for $8.2 billion, said it expects regulatory approval for the deal within days.

The company also declared a quarterly cash dividend aggregating $75 million for the fourth quarter, which is contingent on the closing of the NYSE Euronext deal.

"ICE delivered another solid quarter with significant operational and strategic initiatives that provide for continued long-term growth," said CEO Jeffrey Sprecher.

Atlanta, Georgia-based ICE posted third-quarter net income of $141 million or $1.92 per share, compared with $131 million or $1.79 per share last year.

Excluding items, adjusted earnings for the quarter were $144.6 million or $1.97 per share. On average, 14 analysts polled by Thomson Reuters expected earnings of $1.83 per share for the quarter. Analysts' estimates typically exclude special items.

Revenue for the quarter climbed 5 percent to $338 million from $323 million in the prior year. Thirteen analysts had a consensus revenue estimate of $332.79 million for the quarter.

Market data revenue rose 12 percent to $40 million from last year. Other revenue, including clearing deposits, more than doubled to $18 million. Transaction and clearing revenues were higher by $1 million at $280 million.

Meanwhile, futures average daily volume was 3.1 million contracts, down 1 percent year-over-year.

Earlier this month, ICE received approval from Euronext Regulators for its acquisition of New York Stock Exchange parent NYSE Euronext Inc. (NYX). ICE agreed in December to acquire NYSE Euronext in cash and stock deal valued at about $8.2 billion, and planned an initial public offering to spin-off Euronext as a Continental European-based entity.

The deal is expected to close in the second half of 2013, subject to shareholder and regulatory approvals.

The deal came nearly two years after ICE and Nasdaq OMX Group launched a joint hostile $11.3 billion bid for NYSE, but that failed due to regulatory hurdles.

NYSE Euronext's plan to merge with German Stock Exchange Deutsche Boerse AG (DBOEF.PK, DBOEY.PK) was also scuttled by European Union regulators in February 2012.

The company's stock is trading at $198.69, up $4.85 or 2.50%, on a volume of 321 thousand shares on the NYSE.