Exchange operator ICE beats estimates as trading demand surges

New York Stock Exchange owner, Intercontinental Exchange Inc, reported a higher-than-expected first-quarter profit on Thursday, helped by a surge in trading volumes due to market volatility fueled by the coronavirus crisis.

Trading volumes surged as global financial markets were ravaged by the coronavirus outbreak during the quarter. ICE Chief Executive Officer Jeffrey Sprecher said the company reported the strongest quarter in its history, with record revenues and double-digit earnings per share growth, despite "highly uncertain times".

Market volatility can benefit exchange operators such as ICE and rival Nasdaq, who make most of their money from clearing and settling trades. But the environment has also presented challenges, as a number of global startups and private firms put their IPO plans on hold.

Nasdaq also reported higher-than-expected first-quarter profit but the transatlantic exchange operator warned of uncertainty ahead. CME Group, the world's biggest futures exchange operator, on Wednesday reported first-quarter profit that beat Wall Street estimates, as trading volumes spiked.

ICE's total revenue, excluding transaction-based expenses, rose 22.7% to $1.6 billion in the first quarter. Net revenue from trading and clearing surged 44% to $883 million in the quarter, while revenue from its data and listing unit, which includes pricing, analytics, and exchange data feeds and connectivity, rose 3%.

Net income attributable to the company rose to $650 million, or $1.17 per share, in the quarter ended March 31, from $484 million, or 85 cents per share, a year earlier. The company reported an adjusted profit of $1.28 per share, while analysts expected $1.24 per share, according to IBES data from Refinitiv.

ICE also forecast 2020 operating expenses in the range of $2.61 billion to $2.66 billion.