The increase in total revenues for the quarter was primarily attributable to a $9.6-million increase in other member fees, which mainly reflects the recognition of $8.3 million in temporary member access fees, and a $4.2-million increase in volume-related transaction fees, mainly driven by higher trading volume.
"We are pleased that CBOE achieved year-over-year growth in earnings and revenues in the second quarter of what remains a challenging economic period," said CBOE Chairman and CEO William J. Brodsky."CBOE's top strategic priority remains building the strong fundamentals of our core business, and we are totally focused on investing prudently in growth initiatives that leverage CBOE's existing infrastructure and expertise.In addition, we have intensified our longstanding commitment to options advocacy by working closely with regulators and policy makers who are currently shaping regulatory reforms that will have long-term implications for our customers, our exchange and the industry."
|
Quarter Ended |
Q-2 '09 v. Q-2 ?08 |
Year-to-Date |
YTD ?09 v. YTD ?08 |
||
---|---|---|---|---|---|---|
(In millions) |
6/30/09 |
6/30/08 |
Change |
6/30/09 |
6/30/08 |
Change |
Total Revenues |
$109.4 |
$97.6 |
12% |
$207.9 |
$201.9 |
3% |
Total Expenses |
$61.9 |
$53.7 |
15% |
$120.0 |
$105.2 |
14% |
Income Before Taxes |
$47.5 |
$43.9 |
8% |
$87.9 |
$96.7 |
-9% |
Net Income |
$28.1 |
$25.4 |
11% |
$52.4 |
$56.0 |
-6% |
Operating Margin |
43.4% |
45.0% |
-1.6 pts. |
42.3% |
47.9% |
-5.6 pts. |
Trading volume up with slight shift in trading mix. Second-quarter 2009 options trading volume at CBOE increased eight percent to 296.9 million contracts (4.71 million contracts average daily volume), compared to 275.2 million contracts (4.30 million contracts average daily volume) during second-quarter 2008.
The total average transaction fee per contract was $0.272 for the quarter, down from $0.278 in the second quarter of 2008.This decrease reflects a slight shift in the volume mix during the quarter, with a lower percentage of CBOE's total volume coming from its higher-margin product categories.In addition, the decrease takes into account the impact of CBOE fee waivers for some transactions in response to competitive fee changes within the options industry.
Operating margin drops slightly as expenses for competitive initiatives rise. CBOE's operating margin for the quarter, representing income before taxes as a percentage of total revenues, decreased to 43.4 percent from 45.0 percent in second-quarter 2008, as expenses increased at a higher rate than revenues. However, excluding expenses incurred for C2 during both the second quarter of 2009 and 2008, the operating margin percent was the same for each period.
First-Half 2009 Results: Revenues Up 3%, Net Income Down 6%For the first half of 2009, total revenues increased three percent to $207.9 million, up from $201.9 million during the same period in 2008. Net income declined six percent during the first half of 2009 to $52.4 million from $56.0 million in the first half of 2008.
Total options trading volume through June 2009 was up two percent to 570.0 million contracts compared with 557.8 million contracts traded in the first six months of 2008.The average options contracts traded per day increased to 4.60 million compared with 4.46 million, up three percent versus the first half of 2008.The average total transaction fee per contract was $0.281 through June 2009, down just one percent from $0.285 for the six months ended June 30, 2008.
A 14-percent increase in expenses for the first six months of 2009, partially offset by three-percent growth in revenues, resulted in a decrease in CBOE's operating margin to 42.3 percent for the six months ended June 30, 2009 from 47.9 percent in the same period for 2008.
Strong debt-free balance sheet. At the end of second-quarter 2009, CBOE had $339.9 million of available cash and cash equivalents on its balance sheet and no debt. Working capital - current assets minus current liabilities - increased by $50.2 million to $320.5 million as of June 30, 2009, from $270.3 million at December 31, 2008.
A more detailed report is available at: IC09-220 on http://www.cboe.org/Legal/crclInfo.aspx.
Chicago Board Options Exchange (CBOE), the largest U.S. options exchange and creator of listed options, continues to set the bar for options trading through product innovation, trading technology and investor education. CBOE offers equity, index and ETF options, including proprietary products, such as S&P 500 options (SPX), the most active U.S. index option, and options on the CBOE Volatility Index (VIX), the world's barometer for market volatility. Other groundbreaking products engineered by CBOE include equity options, security index options, LEAPS, FLEX options, and benchmark products such as the CBOE BuyWrite Index (BXM). CBOE's Hybrid Trading System incorporates electronic and open-outcry trading, enabling customers to choose their trading method.CBOE's Hybrid is powered by CBOEdirect, a proprietary, state-of-the-art electronic platform that also supports the CBOE Futures Exchange (CFE), CBOE Stock Exchange (CBSX) and OneChicago. CBOE is home to the world-renowned Options Institute and http://www.cboe.com/, named "Best of the Web" for options information and education.