Cboe reports $296.9 million net revenue with 5% increase for Q2 2020

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

The company reports that diluted EPS for the second quarter were $1.03, up 32% from the second quarter the previous year. Cboe also reports adjusted diluted EPS for Q2 of $1.31 with 16% increase for the same period the previous year. Net revenue reached $296.9 million, up by 5%. For Q1 this year, the company reported $358.3 million and 17% drop. The company also set new quarterly heights with US Equities and multi-listed options volume.

EBITDA Margin for Q2 was 70%, up by 560 bps compared to the same period the previous year. Adjusted EBITDA Margin reached 71.1%, up by 270 bps. Cboe returned $139 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
Source: Cboe.com

I am pleased to report solid financial results for the quarter, clearly highlighting the strength of the diversification of our revenues from multiple asset classes and non-transactional services. We achieved record trading volumes in US cash equities and multi-listed options, fueled by growth in retail trading activity. Amid an ongoing work from home environment, we continued to execute on our strategic initiatives, including our focus on expanding our global access and distribution and engaging customers via information solutions.

Edward T. Tilly continued:

On July 1, we closed our acquisition of EuroCCP and announced our intention to expand equities derivatives trading in Europe by offering a market model that incorporates benefits seen in the US derivatives market. We plan to launch that market with trading in equity futures and options based on six Cboe European stock indices in the first half of 2021, with plans to add more benchmarks later. We also completed the acquisition of Trade Alert to further bolster Cboe’s diverse suite of information solutions and announced plans to acquire MATCHNow, a leading Canadian ATS, broadening Cboe’s North American equities business and expanding our geographic reach.

Cboe announced recently its plans to begin trading in Mini Cboe Volatility Index (VIX) futures on Cboe Futures Exchange (CFE) from 10 August, The new contract builds on the VIX futures’ success and responds to investors’ demand for wider variety of tools to gain direct exposure to the VIX Index.


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