Cboe reports $292 million net revenue for Q3 2020

Exchange holding company Cboe Global Markets released its results for the third quarter of 2020.

The company reports that diluted EPS for the third quarter were $1.01, down by 1.9 % from the second quarter and up 7% YoY compared to the third quarter the previous year. Cboe also reports adjusted diluted EPS for Q3 of f $1.11 with 15.3% decrease from Q2 and 14% YoY from the same period the previous year.

Cboe registered net revenue of $292 million for Q3 2020, down by 1.7% compared to Q2 2020 when it reached $296.9 million. The number was also down 1% YoY compared to Q3 2019.

EBITDA Margin for Q3 was 72.6%, compared to 65.2% the same period the previous year. Adjusted EBITDA Margin reached 65.9%, compared to 70.9% in 2019. Cboe returned $88 million to shareholders through share repurchases and dividends.

Cboe Global Markets

Edward T. Tilly, Cboe Global Markets Chairman, President and Chief Executive Officer commented:

Edward T. Tilly

Edward T. Tilly

Our third quarter results highlight continued robust engagement among retail customers offset by decreased trading among institutional investors as a result of ongoing uncertainty regarding the global macro-environment. We continued throughout the quarter to diversify our products and services for customers of every type by advancing key growth initiatives, including the expansion of our market data offering and the completion of our MATCHNow and EuroCCP acquisitions, which will enable us to further leverage our index product expertise and broaden our customer reach in new geographies.

Tilly continued:

We continue to make investments for future growth as evidenced in our recently announced plans to acquire BIDS Trading, a leading block trading venue, which would build upon our successful partnership in Europe with Cboe LIS and provide Cboe a presence in the growing off-exchange segment of the US equities market.

Brian N. Schell, Cboe Global Markets Executive Vice President, Chief Financial Officer and Treasurer added:

We delivered adjusted EPS of $1.11 and an adjusted EBITDA margin of nearly 66 percent for the quarter, driven by the strength of our diversified business model. Although net revenue and adjusted earnings were down year-over-year, we continued to generate solid cash flow, investin the growth of our business for the long-term, and returned nearly $88 million of capital to shareholders in the quarter through dividends and share repurchases. We remain focused on appropriate expense discipline as we execute our key strategic growth initiatives and strive to deliver long-term value to our shareholders.

Earlier in October, Cboe Global Markets announced that the company has agreed to acquire US-based BIDS Trading, brokerdealer and the operator of the BIDS Alternative Trading System (ATS).

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