Intercontinental Exchange Inc (ICE) has reported an 18.36 percent rise in profit for the quarter ended Sep. 30, 2016. The company has earned $1,070 million, or $8.93 a share in the quarter, compared with $904 million, or $8.10 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $385 million, or $3.21 a share compared with $323 million or $2.91 a share, a year ago.
Revenue during the quarter grew 29.19 percent to $4,474 million from $3,463 million in the previous year period. Total expenses were 64.04 percent of quarterly revenues, up from 61.54 percent for the same period last year. That has resulted in a contraction of 250 basis points in operating margin to 35.96 percent.
Operating income for the quarter was $1,609 million, compared with $1,332 million in the previous year period.
"In 2016, we’ve grown revenue, margins and earnings while investing in our long term growth," said ICE chairman and chief executive officer Jeffrey C. Sprecher. "Our double digit earnings growth year to date is driven by serving the rising demand for risk management, data and for capital efficient solutions in the US, Europe and Asia as markets evolve, driven by regulation, automation and innovation."
Working capital remains negative
Working capital of Intercontinental Exchange Inc was negative $510 million on Sep. 30, 2016 compared with negative $406 million on Sep. 30, 2015. Current ratio was at 0.99 as on Sep. 30, 2016, down from 0.99 on Sep. 30, 2015.
Days sales outstanding were almost stable at 14 days for the quarter, when compared with the last year period.
Debt increases substantially
Intercontinental Exchange Inc has witnessed an increase in total debt over the last one year. It stood at $6,305 million as on Sep. 30, 2016, up 80.14 percent or $2,805 million from $3,500 million on Sep. 30, 2015. Total debt was 8.26 percent of total assets as on Sep. 30, 2016, compared with 5.31 percent on Sep. 30, 2015. Debt to equity ratio was at 0.41 as on Sep. 30, 2016, up from 0.28 as on Sep. 30, 2015. Interest coverage ratio deteriorated to 12.01 for the quarter from 19.88 for the same period last year.
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