NYSE-owner ICE third quarter profit beats on virus-driven market volatility

(Reuters) – Intercontinental Exchange Inc , owner of the New York Stock Exchange, beat Street estimates for third-quarter profit on Thursday, boosted by higher trading volumes due to coronavirus-driven volatility in the market.

Excluding one-time items, ICE earned a profit of $1.03 per share. Analysts had expected a profit of 99 cents per share, according to IBES data from Refinitiv.

The market volatility fuelled by the COVID-19 pandemic has helped stock exchanges as trading volumes go up, even as the broader economy is experiencing the worst downturn in decades.

ICE, however, reported a fall in profit as expenses were higher, mainly related to the company’s acquisition of mortgage tech firm Ellie Mae during the quarter.

Net income attributable to the company fell to $390 million, or 71 cents per share, for the three months ended Sept. 30, from $529 million, or 94 cents per share, a year earlier.

Operating expenses for the period were up 24% to $784 million.

In August, ICE said it would buy Ellie Mae for $11 billion, in a move aimed at improving automation of the home financing process.

Revenue from ICE’s transaction and clearing unit, its biggest business, rose 24% to $1.2 billion.

Overall revenue, minus transaction-based expenses, jumped 6% to $1.41 billion, also beating estimates of $1.38 billion.

(Reporting by Niket Nishant in Bengaluru; Editing by Rashmi Aich)