Exchange operator (Cboe) released its financial results for 2018 this Friday. The company saw a sizeable uptick in revenues last year when compared to 2017.
The exchange operator reported total revenue of $2.77 billion last year. That was a 24 percent increase on 2017 when the firm in revenue.
Cboe’s growth was largely down to an uptick in revenue drawn from transaction fees.
Over the course of 2017, the firm was able to rake in $1.56 billion from those fees. Last year, they brought in $1.99 billion – a 28 percent increase on 2017.
Reflecting the rise in revenues was an increase in the company’s business costs. In 2018, business costs rose to $1.55 billion, a 26 percent increase on the prior year’s $1.23 billion.
Cboe liquidity payments up
That growth was largely due to a $261 million increase in the amount Cboe spent on liquidity payments, which rose to $1.11 billion, in 2018.
Other expenditure, including wages, technology support and facilities costs, remained fairly constant compared to 2017.
In 2018, those expenses amounted to $617.5 million. That was just less than the $623.7 million that the firm spent in 2017.
Thus, Cboe was able to report a pre-tax income of $599.4 million. That was a 61 percent increase on the $334.4 million that the firm reported in 2017.
But, due to taxation, the firm won’t be seeing a large uptick in its actual profit for the year.
That’s because, in 2017, the firm was given a $66.2 million tax rebate, which meant the firm finished the year with $400.6 million in net income.
Sadly for Cboe, this year their tax bill was equal to $146 million. That meant the firm had net income of $425.2 million – still an increase on last year but one that does not reflect the performance of the company last year.
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