Summary
Cboe Global Markets, Inc. (CBOE) reported modest revenue growth for the three months ended June 30, 2015, with total operating revenues increasing by 3.3% to $148.7 million, driven primarily by higher transaction fees and other revenue. This growth was achieved despite a 9.4% decrease in overall trading volume, indicating a significant increase in average revenue per contract. For the six months ended June 30, 2015, total operating revenues declined by 3.4% to $291.5 million, largely due to lower transaction fees and access fees, coupled with a 12.5% decrease in trading volume. The company saw a decrease in operating expenses for the six-month period, primarily driven by lower compensation and benefits, partly due to the transition of regulatory services to FINRA. Net income allocated to common stockholders saw an increase of 4.8% to $44.6 million for the three-month period, resulting in a diluted EPS of $0.54. However, for the six-month period, net income allocated to common stockholders decreased by 4.8% to $86.7 million, with diluted EPS at $1.04. The company continued its share repurchase program, spending $78.6 million in the first six months of 2015, and had $111.0 million remaining under its authorizations as of June 30, 2015. Cash and cash equivalents decreased to $89.6 million from $147.9 million at the end of 2014, primarily due to investing and financing activities, including a $30 million advance to OCC.
Financial Highlights
44 data points| Revenue | $148.72M |
| Operating Expenses | $75.36M |
| Operating Income | $73.37M |
| Net Income | $44.84M |
| EPS (Basic) | $0.54 |
| EPS (Diluted) | $0.54 |
| Shares Outstanding (Basic) | 83.29M |
| Shares Outstanding (Diluted) | 83.29M |
Key Highlights
- 1For the three months ended June 30, 2015, total operating revenues increased by 3.3% to $148.7 million, driven by a 3.8% increase in transaction fees, despite a 9.4% decrease in trading volume. This indicates a 14.5% rise in average revenue per contract.
- 2For the six months ended June 30, 2015, total operating revenues decreased by 3.4% to $291.5 million, with transaction fees down 4.9% and total trading volume down 12.5%. However, average revenue per contract increased by 8.6%.
- 3Operating expenses decreased by 1.0% to $148.6 million for the six-month period, primarily due to a significant 22.2% reduction in compensation and benefits, largely attributable to lower stock-based compensation and the transition of regulatory services.
- 4Net income allocated to common stockholders increased by 4.8% to $44.6 million for the three months ended June 30, 2015, translating to a diluted EPS of $0.54, up from $0.50 in the prior year.
- 5For the six months ended June 30, 2015, net income allocated to common stockholders decreased by 4.8% to $86.7 million, with diluted EPS at $1.04, down from $1.06 in the prior year.
- 6The company actively repurchased shares, spending $78.6 million in the first six months of 2015, and had $111.0 million in remaining repurchase authorization as of June 30, 2015.
- 7Cash and cash equivalents decreased to $89.6 million as of June 30, 2015, compared to $147.9 million at December 31, 2014, reflecting significant outflows for investing activities, including a $30 million advance to OCC, and financing activities.