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NYSE-parent ICE posts profit rise on robust trading volumes, hikes dividend
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NYSE-parent ICE posts profit rise on robust trading volumes, hikes dividend
Feb 6, 2025 5:45 AM

Feb 6 (Reuters) - Intercontinental Exchange ( ICE )

reported a higher fourth-quarter profit on Thursday, as the New

York Stock Exchange parent benefited from strong trading volumes

in the energy and options segments.

Shares of the company, which also raised its quarterly

dividend by 7%, were up 2.6% in trading before the bell.

The global commodity and energy markets saw significant

volatility due to the conflict in the Middle East. Market

turmoil tends to boost overall trading volumes for exchanges.

The markets also saw strong trading activity in the reported

quarter as the Federal Reserve continued its monetary easing

policy after keeping interest rates sky-high for over a year to

tackle inflation.

The exchange operator said revenue from trading in

energy-related products surged 16% in the fourth quarter to $477

million.

ICE's energy trading volumes rose 15%, with gains across

segments including oil, gasoil as well as other crude and

refined products. Natural gas average daily volumes increased

17%.

Total revenue from the company's exchange business, the

biggest component of its revenue base, was $1.24 billion

compared with $1.14 billion in the year-earlier period.

Financials revenue, which is housed within the company's

exchanges segment and includes interest rates and other

financial futures and options, jumped 30%.

The rate-cuts and hopes of a soft landing for the

economy clubbed with expectations of a potential "pro-business"

administration motivated many startups to go for initial public

offerings, even though post-IPO performances remained sub-par.

An increase in the number of IPOs help exchanges that

charge fees for stock listings.

ICE's listings business posted a 1% rise in quarterly

revenue.

The company reported adjusted earnings of $875 million, or

$1.52 per share, for the three months ended Dec. 31, compared

with $760 million, or $1.33 per share, a year earlier.

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