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ICE swings to loss in Q4; cites transaction costs

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February 11, 2014 01:09 PM EST | AP

ATLANTA (AP) — IntercontinentalExchange Group reported Tuesday it swung to a loss in the fourth quarter as it sustained substantial costs for its acquisition of the New York Stock Exchange's parent company and other items.

The 14-year-old futures exchange completed in November its $11 billion takeover of NYSE Euronext, parent of the two-centuries-old NYSE and several stock exchanges in Europe. Atlanta-based IntercontinentalExchange, known as ICE, said that buying and absorbing NYSE Euronext cost $131 million in the October-December period.

ICE reported a net loss of $176 million, or $1.83 a share, for the fourth quarter. That compared with net income of $130 million, or $1.76 a share, in the final three months of 2012.

The loss came despite an 88 percent jump in fourth-quarter revenue to $612 million from $324 million a year earlier.

Other fourth-quarter costs included a $190 million expense reflecting the effect of the devaluation of the Brazilian currency on ICE's 2011 investment in Cetip SA, a Brazilian securities firm.

Excluding the transaction-related costs and other items, ICE said its adjusted income was $192 million, or $2 a share.

That tops the $1.96 per share average analyst estimate, according to FactSet.

ICE has expanded rapidly through acquisitions over the past decade. In its latest move, ICE completed its acquisition of the Singapore Mercantile Exchange earlier this month. The deal gives ICE its first access to Asia's exchange and trade-clearing infrastructure.

For the full year, the company earned $254 million, or $3.21 per share, on revenue of $1.67 billion.

ICE also announced Tuesday a dividend of 65 cents a share for the first quarter, payable March 31 to shareholders of record March 17.

Shares of ICE rose $1.96 to $214.07 in afternoon trading.