(Reuters) -Exchange operator Cboe Global Markets Inc reported a first-quarter profit that beat expectations, helped by a surge in trading volumes due to pandemic-driven market volatility.
U.S. exchanges have not only benefitted from a surge in retail participation due to the health crisis but also witnessed a deluge of new stock floatations during the quarter in a bid to capitalize on the red-hot IPO market.
“We are off to a strong start this year with continued momentum across the company, achieving quarter-over-quarter increases in net revenue and trading activity for each business segment,” said Cboe Chief Executive Officer Edward T. Tilly.
For the quarter, Cboe reported a near 10% jump in total revenue of more than $1 billion, compared with the year-ago period.
Revenue from North American equities trading rose 11%, even as options trading revenue fell 4%. Revenue from European equities trading climbed 61%, while futures revenue fell 24% from a year earlier.
Net income fell nearly 10% to $164.8 million, or $1.53 per share, but was above analysts’ average estimate of $1.40 per share, according to Refinitiv IBES data.
(Reporting by Sohini Podder in Bengaluru; Editing by Ramakrishnan M.)
