Bats Global Markets, Inc. (Bats: BATS), a leading global exchange operator and provider of market data and other financial markets services, today reported net income of $32.5 million and adjusted earnings† of $38.5 million for the fourth quarter ended December 31, 2016. Net income increased 50% and adjusted earnings† rose 35% compared to the same period in 2015 driven primarily by continued growth in non-transaction revenue, realization of synergies from the Direct Edge acquisition and a lower effective tax rate in the fourth quarter 2016. For the full year, Bats reported record net revenue of $436 million, an increase of 13% compared to 2015 and record net income of $109 million, a 33% increase over 2015.
Diluted earnings per share increased to $0.34 during the fourth quarter of 2016 from $0.23 for the same period in 2015, and adjusted earnings†, which excludes tax-adjusted amortization and other costs, rose to $0.40 per diluted share from $0.30.
“The fourth quarter capped off an impressive year for Bats. As we move towards closing the pending transaction with CBOE Holdings in the first quarter, we are excited about the opportunities before us in 2017,” said CEO Chris Concannon. “Bats and CBOE share a similar mission to make trading more competitive for all market participants and we will leverage our mutual resources to create greater market efficiencies and expanded opportunities for the trading and investing community.”
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