Chicago, April 24, 2009 - The Chicago Board Options Exchange (CBOE) today reported revenues andearnings for the three-month period ending March 31, 2009.
Quarterly revenues totaled $98.6 million on volume of 273.1 million contracts versus revenues of $104.3 million on volume of 282.5 million contracts during first-quarter 2008, a five-percent revenue decrease.A three-percent decrease in trading volume, combined with a relatively unchanged rate per contract during the quarter, translated into a three-percent decrease in transaction fees.The average rate per contract for the quarter was $0.292 compared with $0.291 for last year's first quarter.Average daily volume for the first three months of 2009 totaled 4.5 million contracts as compared to 4.6 million contracts a year ago, down three percent.Lower revenue from investment income and other revenue also contributed to the first-quarter decline in revenues.
Net income for the first quarter was $24.3 million compared to $30.6 million for first-quarter 2008, down 21 percent, reflecting the net effect of lower revenues and higher expenses compared with the prior year period.
"While CBOE's first quarter financial results were down following a string of record quarters, overall trading volume was better than expected in light of the difficult market.Our broad product line has proven to be useful to customers, even in challenging markets, and we continue to invest in growth opportunities to fortify our leadership position," said CBOE Chairman and CEO William J. Brodsky. "We're pleased to note that CBOE's second quarter is off to a good start, with average daily volume thus far in April up more than 25 percent over the same time last year."
|
Quarter Ended |
Quarter Ended |
Q-1 '09 v. Q-1 '08 |
---|---|---|---|
(In thousands) |
3/31/09 |
3/31/08 |
% Change |
Total Revenues |
$98,578 |
$104,315 |
-5% |
Operating Expenses |
$58,189 |
$51,559 |
+13% |
Income Before Taxes |
$40,389 |
$52,756 |
-23% |
Operating Margin |
41.0% |
50.6% |
- |
Net Income |
$24,278 |
$30,608 |
-21% |
First-quarter expenses rose 13 percent to $58.2 million compared to $51.6 million one year ago.The increase primarily reflects the impact of higher trading volume incentives, expenses related to the development of C2, and negative variances resulting from non-recurring refunds and reimbursements received by the Exchange in the first quarter of 2008.
CBOE continues to maintain a strong, debt-free balance sheet and a positive cash flow position.Working capital (current assets minus current liabilities) increased by $23.7 million to $294.0 million for the first quarter, while cash and investments totaled $317.8 million at March 31, 2009, up $36.3 million from December 31, 2008.
A more detailed report is available in Information Circular IC09-36 at http://www.cboe.org/Legal/crclInfo.aspx.
During the first quarter of 2009, CBOE made the following announcements:
-The Exchange experienced a 21-percent decrease in January average daily trading volume (ADV), an eight-percent increase in February ADV, and a six-percent increase in March ADV (best March ever at the Exchange) over the same periods in 2008.
-On March 2, CBOE Futures Exchange (CFE) launched trading in CBOE mini-VIX futures, a contract one-tenth the size of CFE's standard VIX futures contract. The CBOE Volatility Index (VIX), based on real-time S&P 500 Index (SPX) options listed on CBOE, reflects investors' consensus view of future expected market volatility of the S&P 500 Index.
-On March 24, CBOE removed long-standing blackout dates on FLexible Exchange(R) (FLEX) options, making way for these contracts to expire on any day of the month. By removing the blackout periods associated with key expiration periods, customers who trade over-the-counter equity and index contracts may now trade exchange-traded contracts with similar characteristics and no expiration restrictions.
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 www.cboe.com, named "Best of the Web" for options information and education.