Bats’ Q4 Financials Record Steady Growth, Earnings Pointed Higher

The group saw a strong finish to its net revenues and net income during Q4 2016.

BATS Global Markets (Bats), one of the largest exchange operators in the US and Europe, has released its latest quarterly earnings report for Q4 2016. Overall its revenues and financials were pointed higher, with a strong performance of its FX volumes.

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For Q4 2016, Bats reported a net revenue of $105.4 million, which is an increase of 6.7 percent year-over-year from $98.6 million in Q4 2015. In addition, the group’s operating income was also higher over this same period, coming in at $54.1 million for Q4 2016, growing by 14.4 percent year-over-year from $47.3 million in Q4 2015.

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Revenue in terms of asset classes was largely mixed with its US options and foreign exchange (FX) segments seeing the strongest rise. Revenues attributed to global FX rose to $10.2 million in Q4 2016, up from $8.6 million in the year prior, or 19.0 percent year-over year. Meanwhile, US options revenues also notched an advance to $10.9 million, compared to $8.2 million in Q4 2015.

One of the strongest segments of growth in Q4 2016 was Bat’s diluted earnings per share (EPS), which climbed to $0.34 in its latest reading. This corresponded with an ascension of 47.8 percent year-over-year from $0.23 in Q4 2015.

Bats’ overall earnings were higher across-the-board in its latest quarterly filing, which also reported adjusted earnings of $38.5 million in Q4 2016. Relative to the year prior, this constituted growth of 34.6 percent year-over-year from $28.6 million in Q4 2015. Its net income also climbed to $32.5 million in Q4 2016, compared to just $21.7 million in Q4 2015 or 50.0 percent year-over-year.

In terms of volumes, Bats saw a decline in each of its US and European Equities and US options spaces in Q4 2016. However, its market average notional volumes for global FX climbed to $26.7 million in Q4 2016, up 14.0 percent year-over-year from $23.5 million.

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