February 7, 2020 / 1:14 PM / 17 days ago

UPDATE 1-Exchange operator Cboe profit beats as lower costs offset weak trading

(Adds analysts' estimates, details on trading volumes)

Feb 7 (Reuters) - Exchange operator Cboe Global Markets Inc beat Wall Street estimates for fourth-quarter profit on Friday, as it sharply reduced expenses to counter a hit from lower trading volumes.

"Lower volatility dampened trading, particularly in our suite of proprietary products, which experienced exceptionally strong trading in 2018's fourth quarter," said Edward Tilly, Chief Executive Officer, in a statement.

Transaction fees declined 30% to $394.2 million in the quarter, as trading volumes fell across its segments.

Rivals Nasdaq and Intercontinental Exchange had also reported a fall in trading volumes in the quarter compared with last year, when financial markets were rocked by heightened volatility due to trade tensions between the United States and China.

Cboe Global Markets said options trading volume fell 15%, while futures trading volume plunged 33%.

Net income allocated to common stockholders fell to $86.1 million, or 77 cents per share, in the fourth quarter ended Dec. 31, from $137.3 million, or $1.23 per share, a year earlier.

Adjusted operating expenses fell 14.5% to $95.6 million.

On an adjusted basis, Cboe earned $1.21 per share, beating analysts' estimates of $1.11, according to IBES data from Refinitiv.

Net revenue fell to $280.3 million from $334.4 million. (Reporting by Bharath Manjesh in Bengaluru; Editing by Amy Caren Daniel)

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below