May 3, 2019 / 12:09 PM / 3 months ago

Exchange operator Cboe beats profit estimates on expense control

Chicago Board Options Exchange (CBOE) Global Markets sign hangs at its headquarters building in Chicago, Illinois, U.S., September 19, 2018. REUTERS/Michael Hirtzer

(Reuters) - Cboe Global Markets Inc beat analysts’ estimates for first-quarter profit on Friday, as a tight lid on expenses helped offset lower transaction fees in a softer trading environment.

Transaction fees fell about 21 percent to $430.4 million from a year earlier, hit by lower trading volumes across each trading segment.

Options trading volumes were down 22 percent, while futures trading volumes fell 37 percent. The lower transaction fees were offset by lower operating expenses which fell 17 percent to $134 million in the reported period.

Derivatives such as options and futures are traded on Cboe’s VIX index, Wall Street’s so-called “fear gauge”, which measures 30-day expected market volatility of the S&P 500 index.

Net income allocated to common stockholders fell to $94.6 million, or 85 cents per share, in the first quarter ended March 31, from $117.3 million, or $1.04 per share, a year earlier. (

On an adjusted basis, Cboe earned $1.11 per share, while analysts had expected $1.00 per share, according to IBES data from Refinitiv.

The Chicago-based company’s net revenue fell to $280.5 million from $328.5 million.

Reporting by Bharath Manjesh in Bengaluru; Editing by Shounak Dasgupta

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