Intercontinental Exchange (ICE) has reported 4.86 percent fall in profit for the quarter ended Dec. 31, 2016. The company has earned $352 million, or $0.59 a share in the quarter, compared with $370 million, or $0.66 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $428 million, or $0.71 a share compared with $369 million or $0.65 a share, a year ago.
Revenue during the quarter grew 21.74 percent to $1,484 million from $1,219 million in the previous year period. Gross margin for the quarter contracted 490 basis points over the previous year period to 23.32 percent. Total expenses were 62.40 percent of quarterly revenues, down from 65.71 percent for the same period last year. This has led to an improvement of 331 basis points in operating margin to 37.60 percent.
Operating income for the quarter was $558 million, compared with $418 million in the previous year period.
"Amidst a volatile and dynamic environment, we delivered our eleventh consecutive year of record revenue," said ICE chairman and chief executive officer Jeffrey C. Sprecher. "Despite the challenges of market volatility driven by geopolitics, we achieved our objectives by working closely with our customers across trading, risk management and data to again deliver strong revenue growth, margin expansion and double-digit profit increases. We are excited about collaborating with our customers in 2017 given the range of ways we are working to serve their evolving trading, listing, data and risk management needs."
Working capital remains negative
Working capital of Intercontinental Exchange was negative $1,484 million on Dec. 31, 2016 compared with negative $1,430 million on Dec. 31, 2015. Current ratio was at 0.97 as on Dec. 31, 2016, up from 0.97 on Dec. 31, 2015.
Debt comes down
Intercontinental Exchange has recorded a decline in total debt over the last one year. It stood at $6,364 million as on Dec. 31, 2016, down 12.92 percent or $944 million from $7,308 million on Dec. 31, 2015. Total debt was 7.76 percent of total assets as on Dec. 31, 2016, compared with 9.37 percent on Dec. 31, 2015. Debt to equity ratio was at 0.40 as on Dec. 31, 2016, down from 0.49 as on Dec. 31, 2015. Interest coverage ratio deteriorated to 12.68 for the quarter from 13.93 for the same period last year.
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