Cboe Global Markets Reports Q3 Results

Market operator and global trading solutions provider Cboe Global Markets, Inc. announced its financial results for Q3 2020.

Highlights of Consolidated Results

Specifically, net revenue accounted to $292 million in the latest quarter, showing a 1% decrease compared to the same period last year.

EBITDA margin for Q3 was 72.6% compared to 65.2% in 2019. In terms of adjusted EBITDA margin, the number in Q3 was 65.9% compared to 70.9% in the previous year.

The company also reported a 5% YoY decrease in operating income with $139.3 million in Q3, compared with $147.4 million a year earlier.

In addition, the diluted EPS of the third quarter were $1.01, repersenting a 7% increase compared with its counterparts in 2019.

Total operating expenses were $152.7 million versus $146.6 million in the third quarter of 2019.

Across all segments, European equtities boasts the highest growth rate whilst options business achieved the highest revenue of $148.1 million.

Management Comments

“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. 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 U.S. equities market,” said Edward T. Tilly, Cboe Global Markets Chairman, President and Chief Executive Officer. “Despite the challenging trading environment, I have never been more excited about the opportunities ahead as a result of our ability to continue to successfully execute on meaningful initiatives to deliver increased value to our customers and our shareholders,” Mr. Tilly added.