CBOE Holdings 1Q income rises on greater fees

CBOE Holdings 1st-quarter net income grows as fees increase despite decline in trading

Associated Press

CHICAGO (AP) -- Exchange operator CBOE Holdings Inc. said Friday its net income rose 27 percent in the first quarter as trading of index options and futures contracts increased, giving the company greater transaction fees.

CBOE Holdings is the parent of the Chicago Board Options Exchange and the CBOE Futures Exchange. The company said trading volume decreased in the first quarter, but it reported greater transaction fees and more revenue per contract because a larger proportion of its trading volumes came from index options and futures contracts.

CBOE said its net income after dividends grew to $41.8 million, or 48 cents per share, from $32.9 million, or 37 cents per share. The company said it earned 50 cents per share if one-time items are excluded. Its revenue grew 18 percent, to $142.7 million from $121.4 million.

Analysts were expecting net income of 47 cents per share and $139.6 million in revenue, according to FactSet.

Shares of CBOE Holdings advanced $1.45, or 3.9 percent, to $38.96 in morning trading as a positive U.S. jobs report gave the market a boost. Earlier the stock reached an all-time high of $39.19.

Most of the company's revenue growth came from greater transaction fees. It also reported increased regulatory fees and more revenue from exchange services and other fees.

CBOE said average daily volume fell 11 percent to about 4.4 million trades. Total trading volume fell 13 percent to 262 million trades, in part because there were fewer trading days in the first quarter of 2013.

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