💙 🔷 Not impressed by Big Tech in Q3? Explore these Blue Chip Bargains insteadExplore for free

UPDATE 1-CBOE profit plunges 40 pct as transaction-fee revenue drops

Published 2016-10-28, 08:15 a/m
© Reuters.  UPDATE 1-CBOE profit plunges 40 pct as transaction-fee revenue drops
CBOE
-

(Adds details)

Oct 28 (Reuters) - CBOE Holdings Inc CBOE.O , the operator of the largest U.S. options exchange, reported a 40 percent fall in quarterly profit, hurt by lower revenue from transaction fees and acquisition-related costs.

CBOE said its profit took an $8.6 million hit from acquisition-related costs in the quarter. The company had agreed to buy Bats Global Markets Inc BATS.Z for $3.2 billion last month.

The company, which owns the Chicago Board Options Exchange, said operating revenue fell 16.5 percent to $156.21 million.

Transaction fees slumped 22.7 percent in the quarter as markets were less volatile compared with last year, which saw higher activity due to worries over China's economy and a rout in the energy market.

The average rate paid per contract fell 12.3 percent to 37 cents from a year earlier, the company said.

CBOE said net income allocated to common shareholders fell to $40.28 million, or 50 cents per share, in the quarter ended Sept. 30 from $67.22 million, or 81 cents per share, a year earlier. items, the company earned 58 cents per share, beating the average analyst estimate of 56 cents, according to Thomson Reuters I/B/E/S.

Operating expenses rose 5.4 percent to $90.56 million.

Up to Thursday's close, CBOE's stock had fallen 4.22 percent this year.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.