Cboe Global Markets reported a rise in its second quarter profits with the exchange operator enjoying higher trading volumes during the period as markets rebounded from last year.
Chicago-based Cboe, which operates four US-listed cash equity options markets, including the largest options exchange in the country, the Cboe Options Exchange, posted 2Q revenue of $468.1 million, a 10% increase from the corresponding quarter last year.
This was in line with the Street expectation per Zacks Consensus Estimate.
Options revenue grew 20% to $283.2 million driven by a double-digit increase in net transaction and clearing fees in addition to growth in market data and access and capacity fees.
Earnings per share (EPS) significantly improved from a loss per share of $1.74 in the year-ago quarter to EPS of $1.78, above the Street estimate of $1.76.
Driving the company’s results was its Derivatives and Data and Access Solution categories, noted Cboe CEO Edward Tilly.
“Overall, the first half of 2023 is off to an exceptional start, and I look forward to building upon these trends in the second half of the year and beyond,” he said.
The company is upbeat on the second half of the year, now expecting its full-year revenue to come in at the higher end of its organic growth target of 7% to 9%.
It also decreased its 2023 adjusted operating expenses guidance from a range of $769 to $779 million to a range of $766 to $774 million.
“The positive revenue and expense guidance revisions for 2023 speak to our ability to effectively monetize the near-term environment while continuing to invest prudently in future growth,” Cboe CFO Jill Griebenow commented in a statement.
Cboe’s shares moved higher following its results, up 3.9% at US$145.43 at mid-morning in New York.
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