IntercontinentalExchange Q4 Adj. Profit Beats View

(RTTNews) - Global markets operator IntercontinentalExchange Inc. (ICE) on Tuesday reported a loss for the fourth quarter, as higher revenues were more than offset by costs related to the company's acquisition of NYSE Euronext. However, adjusted earnings per share beat analysts' expectations, while revenues missed their estimates.

Atlanta, Georgia-based ICE completed its $11 billion acquisition of NYSE Euronext during the fourth quarter of 2013 and the quarter's results include nearly seven weeks of combined results.

For the fourth quarter, net loss attributable to ICE was $176 million or $1.83 per share, compared to net income of $130 million or $1.76 per share last year.

The latest quarter's results include, among others, acquisition-related transaction and integration costs of $131 million relating to the NYSE Euronext acquisition, impairment of $190 million, pre-payment expense of $51 million associated with $400 million in senior notes repaid, and net tax impact of $4 million.

Excluding these items, adjusted earnings for the quarter were $192 million or $2.00 per share, compared to $135 million or $1.84 per share in the previous-year quarter. On average, 17 analysts polled by Thomson Reuters expected the company to report earnings of $1.95 per share for the quarter. Analysts' estimates typically exclude special items.

Total revenue for the quarter more than doubled to $733 million from $324 million in the year-ago period. Revenue, less transaction-based expenses, climbed 89 percent to $612 million from $324 million in the prior year. Analysts had a consensus revenue estimate of $620.19 million for the quarter.

Market data fees for the quarter more than doubled from the year-ago period to $91 million. Transaction and clearing revenues surged 82 percent to $503 million.

Consolidated other revenues soared almost twelve-fold from last year to $104 million, which following the NYSE Euronext acquisition, includes among others, technology services revenues, trading license fees, regulatory fees and listed company service fees.

For fiscal 2013, net income attributable to ICE was $254 million or $3.21 per share, down from $552 million or $7.52 per share in the previous year. Adjusted net income was $646 million or $8.17 per share, compared to $557 million or $7.60 per share in the prior year.

Total revenues for the year rose 32 percent to $1.80 billion from $1.36 billion in the previous year. Revenues, less transaction-based expenses, increased 23 percent to $1.67 billion from $1.36 billion last year.

ICE declared a quarterly cash dividend of $0.65 per share for the first quarter of 2014, with a record date of March 17 and a payment date of March 31. The anticipated ex-dividend date would be March 13.

Looking ahead, Scott Hill, CFO of ICE said, "We are also focused on making progress on our debt reduction target while returning capital to shareholders and continuing to invest in growth in a disciplined manner. We are on track with our integration initiatives, including the transition of the Liffe contracts to our exchanges, the IPO of Euronext and the divestiture of certain NYSE technologies businesses."

ICE expects to achieve 70 percent of its targeted $500 million in expense synergies on a run-rate basis exiting 2014.

In Tuesday's regular session, ICE is trading at $215.20, up $3.09 or 1.46 on a volume of 73,432 shares.