Intercontinental Exchange Inc.'s profit rose in its second
quarter, as lower expenses helped offset lackluster trading
volume.
Results fell short of analysts' expectations.
The exchange operator reported a profit of $283 million, up from
$226 million a year earlier. Per-share earnings rose to $2.54 from
$1.95. Revenue grew 6.3% to $797 million.
Analysts projected $2.77 in per-share earnings on $797.6 million
in revenue, according to Thomson Reuters.
Atlanta-based ICE, which owns the New York Stock Exchange, has
been pushing for an overhaul of the U.S. stock market aimed at
helping exchanges reclaim their role at the center of trading.
Traditional stock exchanges such as the NYSE have seen market
shares erode amid new competitors, declining volumes and increased
dark pool trading.
In its latest quarter, ICE saw trading volume rise just 1% from
a year earlier, as sharp declines in some equity contracts mostly
offset increases in interest rate and commodity volumes.
Meanwhile, fellow exchange operator CME Group Inc. said last
week that its second-quarter volume rose 6%.
Soft trading volume helped push revenue from transaction and
clearing fees to $724 million from $726 million in last year's
quarter. Higher revenue from data services and listing fees
countered that decline.
Like other exchange operators grappling with a more challenging
environment, ICE has worked to trim expenses. In the latest
quarter, costs fell 13% to $367 million. Earlier this year, ICE
said it would cut operating expenses by $90 million, to about $1.3
billion this year.
Write to Lisa Beilfuss at lisa.beilfuss@wsj.com
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