CBOE Holdings cuts expenses as earnings drop on weak volumes
CHICAGO Aug 1 (Reuters) - CBOE Holdings Inc on Friday became the second exchange operator this week to say it will cut expenses in the face of weak trading volumes that are eating into profits.
Chicago-based CBOE, which runs the largest U.S. stock-options market, reduced its outlook for expenses in fiscal year 2014 to a range of $186 million to $190 million, from a previous range of $191 million to $196 million.
The company said net income in the second quarter fell to $42.6 million, or 50 cents per share, from $45.5 million, or 52 cents, a year earlier. Adjusted earnings were also 50 cents per share, meeting analysts' estimates, according to Thomson Reuters I/B/E/S.
Operating revenue was $143.9 million, down from $150.8 million a year earlier and slightly beating estimates for $143.7 million.
Exchange-operator CME Group Inc on Thursday said it would reduce hiring and travel expenses to compensate for weak trading volumes.