Intercontinental Exchange Inc (NYSE:ICE), a major network of exchanges and clearing houses, has reported a set of robust financial figures for the fourth quarter and full year 2014, with profits and revenues rising. The fresh data, released today, add to the positive message delivered by ICE yesterday when it reported some steady results in terms of volumes for January 2015.
Key financial performance indicators for Q4 2014:
- Net income attributable to shareholders amounted to $288 million in the quarter to the end of December 2014, marking an impressive rise of 39.81% over the $206 million seen in the third quarter. The uptick is a very positive sign after the challenging three-month period to the end of September 2014.
- Consolidated revenues less transaction expenses reached $800 million in the fourth quarter of 2014, up by 7% against the preceding quarter.
- On a GAAP basis, diluted earnings per share (EPS) in the fourth quarter were $2.54.
- The annual comparisons, which you may prefer as they exclude seasonal factors, are even better for ICE. Profits in the final quarter of 2014 compared to a loss of $176 million in the same quarter in 2013. The rise in revenues is even more pronounced at 49.3%.
Key financial performance indicators for FY 2014:
- Net income attributable to shareholders amounted to $981 million, up nearly three times (286%) against the result of $254 million recorded for full year 2013.
- Net revenues also surged year-on-year, reaching $3.092 billion (last year’s result was $1.598 billion).
- On a GAAP basis, diluted earnings per share (EPS) for the full year 2014 were $8.55.
Dividend
ICE declared a quarterly cash dividend of $0.65 per share for the first quarter of 2015 with a record date of March 17, 2015 and a payment date of March 31, 2015. The ex-dividend date is March 13, 2015.
Commenting on the solid metrics, ICE Chairman and CEO Jeffrey C. Sprecher said:
“By focusing on the requirements of our customers and delivering on our integration milestones, we achieved record results in 2014. We strengthened our leadership position in growth markets, including global oil, natural gas and swaps clearing. During the year we also separated Euronext, seamlessly transitioned Liffe’s markets to our exchanges and accelerated our synergy realization. We grew revenues at the New York Stock Exchange, increased market share in trading and again led in global capital raising with 129 initial public offerings. We remain focused on delivering growth and solid returns to our investors by putting the needs of our customers first.”
ICE CFO, Scott A. Hill added:
“Our strong cash generation and balance sheet enabled us to pursue strategic growth initiatives this year while returning nearly $1 billion of capital to shareholders through dividends and share buybacks. We recorded our 18th record year in Brent volume and earned nearly $100 million in CDS clearing revenues. We continued to expand our leadership in clearing through product innovation and strategic acquisitions. At the same time, we completed nearly $290 million, or over 50%, of our synergy target by the end of 2014. The strong momentum we have established entering 2015 coupled with continued execution of our strategic initiatives and further expense reductions during 2015 support our target of once again delivering double digit earnings growth, strong cash generation and meaningful capital returns.”
You can read the detailed report on ICE financial metrics here.