The Chicago Board Options Exchange (CBOE) reported revenues and earnings 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 5% revenue decrease. A 3% decrease in trading volume, combined with a relatively unchanged rate per contract during the quarter, translated into a 3% 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 3%. 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%, 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,” says 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% over the same time last year.”
Quarter EndedQ-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 Margin41.0%
50.6%
-Net Income
$24,278
$30,608
-21%
First-quarter expenses rose 13% 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.
D.C.