Summary
Cboe Global Markets, Inc. reported its third-quarter and nine-month results for the period ending September 30, 2019. Total revenues for the nine months decreased by 6.1% to $1.9 billion compared to the prior year, largely due to a 7.1% drop in transaction fees, influenced by declining market volumes. However, the third quarter showed a robust 17.3% increase in total revenues to $675.4 million, driven by higher market volumes and an increase in regulatory fees. Net income for the nine months was $284.5 million, a slight decrease of 0.8% from the prior year. Diluted earnings per share for the nine months were $2.56. The company continued to manage its debt, repaying the remaining $300 million in 1.950% Senior Notes. Cboe also reported a decrease in operating expenses for the nine-month period, largely driven by lower depreciation and amortization, and compensation and benefits, though acquisition-related costs saw an increase. The company repurchased approximately $52.4 million of its common stock during the third quarter, demonstrating a commitment to returning capital to shareholders. Cboe maintains a strong liquidity position, with $150 million in cash and cash equivalents and significant availability under its revolving credit facility.
Financial Highlights
54 data points| Revenue | $675.40M |
| Cost of Revenue | $381.40M |
| Gross Profit | $294.00M |
| Operating Expenses | $146.60M |
| Operating Income | $147.40M |
| Interest Expense | $8.80M |
| Net Income | $105.50M |
| EPS (Basic) | $0.95 |
| EPS (Diluted) | $0.94 |
| Shares Outstanding (Basic) | 111.60M |
| Shares Outstanding (Diluted) | 111.90M |
Key Highlights
- 1Total revenues for the nine months ended September 30, 2019, decreased 6.1% to $1.9 billion, primarily due to a 7.1% decline in transaction fees reflecting lower market volumes.
- 2Third-quarter total revenues increased significantly by 17.3% to $675.4 million, driven by higher transaction fees, regulatory fees, and market data fees.
- 3Net income for the nine months was $284.5 million, a marginal decrease of 0.8% from the prior year, with diluted EPS at $2.56.
- 4Operating expenses for the nine months decreased by 4.6% to $438.6 million, largely due to lower depreciation and amortization, and compensation and benefits.
- 5The company repaid the $300 million 1.950% Senior Notes upon maturity in June 2019.
- 6Cboe repurchased approximately $52.4 million of its common stock during the third quarter under its authorized program.
- 7The company ended the quarter with $150 million in cash and cash equivalents and had $150 million available under its revolving credit facility, indicating strong liquidity.