Net revenue

ICE pays out $689 million to shareholders as first-quarter net revenue grows 6%

Intercontinental Exchange (ICE), a major operator of global exchanges and clearing houses, said it returned $689 million to its shareholders through dividends and share buybacks.

That’s even as the US-based Fortune 500 company reported on Thursday that its net revenue jumped 6% year-on-year (YoY) to $1.9 billion in the first quarter (Q1) of 2022 which ended March 31.

Additionally, ICE said its diluted earnings per share (EPS) for the first quarter rose 2% to $1.16 year-on-year. However, the company’s adjusted diluted EPS rose 7% to $1.43 year-on-year.

Similarly, the giant corporation’s revenue from operations rose 11% year-on-year to $992 million, although its adjusted operating profit came in at $1.2 billion, which represents an 8% year-over-year increase.

Additionally, ICE posted an operating margin of 52% and an adjusted operating margin of 61% in the first quarter of the year.

In contrast, its operating cash flow was $756 million for the period.

Factors behind growth

Jeffrey Sprecher, chairman and CEO of ICE, noted that the “all-weather” nature of the company’s business model has allowed it to grow despite geopolitical unrest, inflationary concerns and rising interest rates.

“A dynamic macro environment and strong secular tailwinds across our business continue to draw customers to our diverse liquid markets and critical data and technologies to manage risk and gain efficiencies,” added Sprecher.

For his part, Warren Gardiner, chief financial officer of ICE, attributed the growth in revenue, operating profit and cash flow of the company to “increased recurring revenue growth across all segments combined with the growth of our various transaction-based businesses”.

Recent movements

Last month, ICE entered into a partnership with British motor racing team, McLaren Racing Extreme E, an international all-electric off-road racing series.

Sprecher said the move was to “join the leadership effort in developing sustainable technology.”

Additionally, ICE recently invested in tZERO, an international leader in blockchain technology for capital markets.

The ICE Chairman described tZERO as beginning “its next chapter leading to growth and adoption of next-generation market infrastructure.”

Intercontinental Exchange (ICE), a major operator of global exchanges and clearing houses, said it returned $689 million to its shareholders through dividends and share buybacks.

That’s even as the US-based Fortune 500 company reported on Thursday that its net revenue jumped 6% year-on-year (YoY) to $1.9 billion in the first quarter (Q1) of 2022 which ended March 31.

Additionally, ICE said its diluted earnings per share (EPS) for the first quarter rose 2% to $1.16 year-on-year. However, the company’s adjusted diluted EPS rose 7% to $1.43 year-on-year.

Similarly, the giant corporation’s revenue from operations rose 11% year-on-year to $992 million, although its adjusted operating profit came in at $1.2 billion, which represents an 8% year-over-year increase.

Additionally, ICE posted an operating margin of 52% and an adjusted operating margin of 61% in the first quarter of the year.

In contrast, its operating cash flow was $756 million for the period.

Factors behind growth

Jeffrey Sprecher, chairman and CEO of ICE, noted that the “all-weather” nature of the company’s business model has allowed it to grow despite geopolitical unrest, inflationary concerns and rising interest rates.

“A dynamic macro environment and strong secular tailwinds across our business continue to draw customers to our diverse liquid markets and critical data and technologies to manage risk and gain efficiencies,” added Sprecher.

For his part, Warren Gardiner, chief financial officer of ICE, attributed the growth in revenue, operating profit and cash flow of the company to “increased recurring revenue growth across all segments combined with the growth of our various transaction-based businesses”.

Recent movements

Last month, ICE entered into a partnership with British motor racing team, McLaren Racing Extreme E, an international all-electric off-road racing series.

Sprecher said the move was to “join the leadership effort in developing sustainable technology.”

Additionally, ICE recently invested in tZERO, an international leader in blockchain technology for capital markets.

The ICE Chairman described tZERO as beginning “its next chapter leading to growth and adoption of next-generation market infrastructure.”