ICE Pays $689m to Shareholders as Q1 Net Revenue Grows by 6%

Intercontinental Exchange (ICE), a prominent operator of global exchanges and clearinghouses, says it has returned $689 million to its shareholders through dividends and stock repurchases.

This is even as the American Fortune 500 company on Thursday reported its net revenues to have jumped by 6% year-on-year (YoY) to $1.9 billion in the first quarter (Q1) of 2022 that ended 31 March.

Also, ICE said its diluted earnings per share (EPS) for Q1 increased by 2% to $1.16 YoY. However, the company’s adjusted diluted EPS spiked by 7% to $1.43 YoY.

Similarly, the giant company’s income from its operations rose 11% YoY to $992 million, although its adjusted operating income stood at $1.2 billion, representing an 8% increase year-on-year.

Additionally, ICE recorded an operating margin of 52% and an adjusted operating margin of 61% in the first quarter of the year. In contrast, its operating cash flow stood at $756 million for the period.

Factors Behind the Growth

Jeffrey Sprecher, ICE’s Chairman and Chief Executive Officer, noted that the "all-weather" nature of the company’s business model enabled it to grow through geopolitical unrest, inflationary concerns and rising interest rates.

“A dynamic macro environment and strong secular tailwinds across our business continue to drive customers to our diverse liquid markets and our mission-critical data and technologies to manage risk and capture efficiencies,” Sprecher added.

On his part, Warren Gardiner, ICE’s Chief Financial Officer, attributed the company's growth in revenues, operating income and cash flows to “compounding recurring revenue growth across segments combined with growth in our diverse transaction-based businesses.”

Recent Moves

Last Month, ICE entered into a partnership with the British motor racing team, McLaren Racing Extreme E, an international all-electric off-road racing series.

Sprecher had said the move was to “join the leadership effort in the development of sustainable technology.”

Furthermore, ICE recently invested in tZERO, an international leader in blockchain technology for capital markets.

The ICE chairman described tZERO as beginning “its next chapter leading the growth and adoption of next-generation market infrastructure."