Cboe global FX revenue increases 21% Y/Y in Q3 2022
Cboe Global Markets, Inc. today reported financial results for the third quarter of 2022.
Global FX net revenue of $17.3 million increased 21% from the year-ago quarter, primarily as a result of higher net transaction and clearing fees.
ADNV traded on the Cboe FX platform was $41.3 billion for the quarter, up 27% compared to last year’s third quarter, and net capture per one million dollars traded was $2.68 for the quarter, down 3% compared to $2.77 in the third quarter of 2021.
Cboe FX market share was 17.8 percent for the quarter compared to 17.0 percent in last year’s third quarter, which is a quarterly record for Cboe FX.
Across all segments, total revenues less cost of revenues of $442.4 million increased 20%, compared to $369.5 million in the prior-year period, reflecting increases in net transaction and clearing fees and access and capacity fees. Inorganic net revenue in the third quarter of 2022 was $5.3 million.
Total operating expenses were $205.6 million versus $178.8 million in the third quarter of 2021, an increase of $26.8 million. Adjusted operating expenses of $172.8 million increased 23 percent compared to $140.3 million in the third quarter of 2021, primarily due to the acquisitions of Cboe Digital (formerly ErisX) and NEO, as well as an increase in salaries, wages, and bonuses resulting in higher compensation and benefits expense.
Diluted EPS for the third quarter of 2022 increased 26 percent to $1.41. Adjusted diluted EPS of $1.74 increased 20 percent compared to 2021’s third quarter results.
“Cboe delivered record adjusted earnings in the third quarter of 2022, building on the strong results produced over the first half of the year. The robust trends were driven by our derivatives franchise, supported by sizable contributions from our data and access solutions and cash and spot markets during the quarter,” said Edward T. Tilly, Cboe Global Markets Chairman and Chief Executive Officer.
“Through the early part of the fourth quarter, we have seen positive momentum in our derivatives business as we continue to expand access to our core products. The enhancements we have recently made, including the addition of Tuesday and Thursday expirations for SPX options and the expansion of our trading hours, continue to help reshape trading behavior and expand the overall market. More broadly, we are investing in innovative solutions that leverage our ecosystem spanning cash markets, data and derivatives markets around the globe. Our business has never been on stronger footing, and we look forward to continuing to deliver increased value to our shareholders and customers.”
At September 30, 2022, the company had adjusted cash1 of $355.3 million. Total debt as of September 30, 2022 was $1,859.8 million, a decrease of $99.4 million from June 30, 2022.
The company paid cash dividends of $53.4 million, or $0.50 per share, during the third quarter of 2022. There were no share repurchases in the third quarter of 2022. As of September 30, 2022, the company had approximately $233.3 million of availability remaining under its existing share repurchase authorizations.