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Friday, February 9, 2018

=Cboe Global Markets (CBOE) reported earnings on Fri 9 Feb 2018 (b/o)

Cboe Global Markets misses by $0.01, reports revs in-line
  • Reports Q4 (Dec) earnings of $0.87 per share, excluding non-recurring items, $0.01 worse thanthe Capital IQ Consensus of $0.88; revenues rose 85.7% year/year to $265.6 mln vs the $267.25 mln Capital IQ Consensus, driven primarily by a $111.5 million net revenue contribution from legacy Bats for the fourth quarter of 2017 and an increase in net transaction fees. Excluding legacy Bats' net revenue contribution, the company's organic net revenue was $154.1 million, up $11.1 million or 8 percent, compared to fourth quarter 2016. The increase is primarily attributable to stronger trading volume and higher revenue contributed from VIX futures and proprietary index options.
  • Options net revenue of $130.0 million was up $3.2 million or 3 percent, reflecting increases in net transaction fees, offset somewhat by higher royalty fees and lower regulatory fees. Net transaction fees for options increased $10.2 million or 11 percent, primarily driven by higher net transaction fees from index options. Total options average daily volume (ADV) increased 9 percent and the average revenue per contract (RPC) increased 2 percent for the fourth quarter, primarily due to a shift in the mix of trading volume towards higher RPC index options. Net transaction fees generated by Cboe's proprietary index options accounted for 83 percent of options net transaction fees and were up $10.3 million or 13 percent versus the fourth quarter of 2016 combined. The increase resulted from an 18 percent increase in index options ADV, driven by increases of 24 percent and 18 percent in VIX and SPX options, respectively.
  • FY18: Adjusted operating expenses are expected to be in a range of $420 million to $428 million, representing a projected increase of 1 to 3 percent compared to combined adjusted operating expenses of $415.3 million for 2017. The guidance excludes the amortization of acquired intangible assets of $157 million, which the company plans to include in its non-GAAP reconciliation. 

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