November 4, 2010
President and COO
Rosenblatt Securities Inc.
New York +1 212 607 3100
Dublin +353 1 855 9125
CBOE: Key Takeaways from Q310 Earnings Call
Following are what we view as the key takeaways from CBOE’s Q310 earnings call this morning. Please feel free to call or email with any questions.
• Adjusted net income of 26c/share beats consensus of 22c, as revenues grew and expenses fell. Operating revenues rose 8% yoy, helped by the company’s first full quarter of receiving revenue from former seat owners who must now pay for trading access permits. The company expects this access-fee revenue ($18.5mn in Q3) to remain consistent in Q4, though it should increase in 2011 as separate fees for C2 memberships begin rolling in (the first monthly fees for C2 are payable this month; trading of the SPX index contract on C2 will be subject to a separate fee structure and begin accruing early next year).