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IntercontinentalExchange Q3 earnings jump 38% on market volatility

Published: 09:54 02 Nov 2011 EDT

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Futures exchange and clearinghouse IntercontinentalExchange (NYSE:ICE) said Wednesday that third-quarter earnings grew 38 percent as high volatility drove robust US and European futures trading.

For the period that ended October 31, net profit was $132.6 million, or $1.80 per share, up from $96.3 million, or $1.29 per share, a year ago.

Revenue jumped 19 percent to $340.8 million. Analysts on average expected ICE to earn $1.77 per share on $336.3 million in revenue, according to Thomson Reuters.

ICE chairman and chief executive, Jeffrey C. Sprecher, said: "By recognizing the demand for market transparency, clearing and automation well in advance of regulatory requirements, ICE continues to deliver strong results."

Investors are able to trade agricultural, credit, currency, emissions, energy and equity index contracts on ICE's exchanges in 70 countries.

ICE's futures trading and clearing revenues were up 24 percent from last year on the back of a 23 percent jump in trading volumes. The popular Brent crude and Gasoil contracts grew.

ICE senior vice president and chief financial officer, Scott Hill, added: "This was another outstanding quarter for ICE, with record revenues, earnings and operating cash flow. Importantly, embedded within these strong results are on-going strategic investments that will enable us to continue to grow and outperform over the long term."

Separately, the company reported futures volume in October 2011. Average daily volume, or ADV, for the company's futures markets was 1,610,020 contracts, an increase of 21 percent from October 2010.
Shares closed Tuesday down 5 percent at $123.26.

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