(Reuters) – Intercontinental Exchange Inc beat estimates for first-quarter profit on Thursday, as market volatility pushed investors to turn to the New York Stock Exchange-parent’s hedging and investment products.
Investors have been overhauling their portfolios to hedge against risk after a slew of interest rate hikes by the U.S. Federal Reserve and the recent banking crisis roiled markets.
Revenue from ICE’s exchanges segment, its biggest business, grew 1% to $1.09 billion, while fixed income and data services segment revenue rose 11% to $563 million.
However, higher rates have quelled demand for mortgages, hurting the company’s mortgage technology unit, which helps businesses review and process mortgage loans.
Revenue from the segment dipped 23% to $236 million.
On an adjusted basis the exchange operator reported a profit of $1.41 per share for the quarter ended March 31, compared with analysts’ average estimate of $1.40 per share, as per Refinitiv data.
ICE’s total revenue, excluding transaction-based expenses, was $1.9 billion, in line with analyst estimates as per Refinitiv data.
(Reporting by Siddarth S in Bengaluru; Editing by Krishna Chandra Eluri)