NYSE-owner ICE’s profit doubles

The New York Stock Exchange (NYSE) owner, Intercontinental Exchange Inc,  reported that its recent profit doubled. According to the company, the powerful performance of its mortgage technology business helped to achieve this result.

Revenue at the mortgage tech unit showed around $345 million. It was much higher from the year-ago period while the exchange operator benefited from its $12 billion acquisition of Ellie Mae. It resulted from the housing market booming after interest rates came out of the coronavirus pandemic.

ICE President Benjamin Jackson talked about this matter. He said that this time, they are trying to take volumes that the industry had last year and intentionally engage with their clients this year. They want to fulfil this action for opportunities to increase the subscription revenue they have and some of the services they provide.

He said on a call with analysts that some of those services cover loan origination, mortgage data, and analytics.

Net income attributable to ICE increased and doubled to $1.26 billion, or $2.23 per share, for the three months ended this June, from $5243 million, or 96 cents per share, a year earlier.

Profit release

According to IBES data from Refinitiv, the exchange operator released a profit of $1.17 per share, with arranged Wall Street estimations.

At the beginning of April, ICE decided to sell a minority stake in Coinbase (cryptocurrency exchange) for more than $1.3 billion.

This is an Atlanta-based company that also said it is in the early stages of examining a sale of its stake in Euroclear, Europe’s most prominent settlement house for securities. The company attempts to reduce its leverage after the Ellie Mae acquisition.  In October 2017, ICE paid 276 million euros, equal to $328 million for the stake.

Without transaction-based expenses, total revenue rose by 23% to $1.72 billion.

In early trading, ICE shares were down 0.7% at $120.63.