Intercontinental Exchange (ICE) Q1 2016 Earnings

Intercontinental Exchange (ICE) CFO Scott Hill said the company achieved record results despite numerous headwinds
 
ICE’s first-quarter 2016 adjusted earnings per share grew 19% to a record $3.68. We achieved these strong results despite a challenging quarter for institutional trading desks, continued regulatory change, and while executing on a range of strategic initiatives.”
Hoping for a better IPO outlook later this year
 
“Listings revenues grew 3% over the prior first quarter, despite a quiet IPO environment. The growth in the first quarter and our confidence in our listings business will continue to grow throughout 2016 is due to our clear leadership and capital raising activity at the NYSE over the last few years. And I’m pleased to say that we’ve already seen a handful of IPOs early in 2Q and our pipeline continues to build.”
Intercontinental Exchange (ICE) CEO Jeff Sprecher said they are dropping their acquisition bid for the London Stock Exchange
 
“This morning we announced our decision to end our current review of a potential offer for the London Stock Exchange Group. The disappointing level of engagement of the LSE ultimately did not allow us to make a complete determination of the integration benefits and their related risks that ICE would require to support a bid.”  
Becoming more and more of a data company
 
Let’s start with data, which is our most recent area of expansion. It’s worth noting that 10 years ago, in 2006, 11% of our consolidated revenues were derived from market data. Today, 41% of our revenues are from our data business, where the breadth of our products and services continue to expand. We’re already seeing the benefits of enhancing the consistency of our revenues with solid margin and growth profile that subscription revenues bring. We’ve long seen the trend of more data and connectivity consumption as markets became more automated, regulated and cleared. And we’ve been an early mover in addressing the rising demand for information and analytics across virtually all asset classes.  We’ve previously discussed the secular drivers of rising data demand, including regulatory reform, automation, unbundling, fragmentation and the move towards passive investing and indexation, just to name a few. These secular trends are also driving growth and the other recent additions to our data business, pricing and analytics, desktops and connectivity.”
Volatility in the oil and commodity markets are driving volumes
 
Hedging is needed regardless of price levels of commodities. Nearly two years ago when oil prices began falling, many suggested that trading and clearing volumes would decline with prices. The reality is just the opposite, because absolute price levels tend not to drive risk management activities, volatility does.”
Intercontinental Exchange (ICE) CEO Jeff Sprecher said they are not focused on market share
 
ICE really doesn’t care about market share. We really want to have people that want to value our services and pay us to provide them. And so that’s the market that we focus on, which is a subset of what you’re talking about, and we’re doing really, really well in the market for people that want to pay for services and that’s why we continue to grow.”