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IntercontinentalExchange, Inc. (NYSE: ICE) reported record quarterly consolidated net income for the first quarter of 2007 of $55.6 million, an increase in quarterly earnings of 183% compared to $19.7 million in net income for the first quarter of 2006. Consolidated revenues in the quarter increased 152% to a record $126.6 million, from $50.3 million in the first quarter of 2006. Diluted earnings per share in the first quarter of 2007 were $0.80, a 142% increase compared to $0.33 in the same period in 2006. ICE completed the acquisition of the Board of Trade of the City of New York, Inc. (NYBOT) on January 12, 2007, when it became a wholly-owned subsidiary of ICE. The first quarter of 2007 represents the first quarter that NYBOT is included in ICE’s financial results. NYBOT will be reported as a separate business segment in the company’s consolidated financial statements.
The record financial results were driven by strong volume during the quarter at ICE Futures, the company’s U.K. futures business segment; at NYBOT, ICE’s U.S. futures business segment; in ICE’s global over-the-counter (OTC) business segment; and in the company’s market data business segment, which now includes the NYBOT market data business. ICE’s total average daily volume (ADV) for its electronically-traded energy contracts in ICE’s global futures and OTC markets exceeded the one-million contract mark for the first time, with ADV of 1.2 million contracts in the first quarter of 2007, representing a 96% increase compared to ADV of 603,000 contracts in the prior year’s first quarter.
“This marks our fifth consecutive record quarter, and these results were achieved amid continued rapid expansion of our markets while we executed on many key initiatives in our core commodities business,” said ICE Chairman and CEO Jeffrey C. Sprecher. “In a highly competitive environment, ICE continues to demonstrate its ability to innovate and to serve customers around the globe, while maintaining its lead in the electronic energy markets and successfully adding new products, customers and markets.”
Sprecher added: “During the quarter, we completed our acquisition of NYBOT, successfully launched electronic trading in NYBOT’s soft commodity contracts and integrated the NYBOT operations smoothly and ahead of schedule. At the same time, we extended our reach into the energy markets, including our technology and settlement alliance with NGX to expand even further into Canadian markets, our purchase of the NGI indexes, and our continued work on new products including the ICE Middle East Sour Crude futures contract. In addition, we were granted 60/40 tax treatment for qualified U.S.-based ICE Futures customers, began developing a world-class clearing solution, and introduced our new matching engine in our key OTC markets. Finally, we offered what we believe is a superior proposal to merge with the Chicago Board of Trade, with a 13.4%, or $1.1 billion premium for CBOT shareholders.”
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