CBOE Earnings Slip 6.4%


CBOE Holdings said its second-quarter earnings slipped 6.4% as trading activity slowed down.

Profit was in line with expectations, while the top line fell just short of them.

"While second-quarter results reflected lackluster trading volume industry-wide and muted market volatility, CBOE posted solid financial results and continued to deliver long-term value, both to our shareholders and market participants," Chief Executive Edward T. Tilly said.

CBOE said average daily volume fell 2.6% to 4.8 million contracts during the quarter. Total trading volume declined 4.1%.

The company raised its dividend to 21 cents a share from 17 cents a share during the quarter, bringing the yield to 1.7% based on CBOE's closing price Thursday. Meanwhile, the company's board also boosted its share-buyback program by $ 100 million. The company said it has bought back $230.3 million in shares since it began the repurchase plan in 2011.

The Chicago Board Options Exchange owner, the biggest U.S. options exchange in terms of trading volume, posted a profit of $42.6 million, or 50 cents a share, down from $45.5 million, or 52 cents a share, a year earlier. Excluding stock-based compensation and other items, the year-ago earnings were 54 cents a share

Operating revenue fell 4.5% to $143.9 million due mainly to transaction fees falling 7.7% to $97.9 million.

Analysts had projected earnings of 50 cents a share and revenue of $144 million, according to Thomson Reuters.

Write to Michael Calia at michael.calia@wsj.com

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