Cboe(CBOE)2025-02-21 13:17Financial Performance - Total revenues for 2024 reached 3,773.5 million in 2023[525]. - Net income for 2024 was 761.4 million in 2023, resulting in basic earnings per share of 1,098.4 million, compared to 725.9 million for 2024, down from 2,479.1 million in 2024, up from 920.3 million[523]. - Total liabilities increased slightly to 3,502.5 million in 2023, with long-term debt remaining stable at 4,279.6 million in 2024, up from 2.36 per share in 2024, up from 1.96 in 2022, totaling 1,100.6 million, compared to 651.1 million in 2022[534]. Currency and Risk Management - A 10% adverse currency fluctuation would impact revenues less cost of revenues by 6.1 million in British Pounds, and 19.8 million in Euros, 52.2 million in Canadian Dollars[485]. - The company has implemented policies to measure, manage, monitor, and report market risks, including foreign currency exchange rate risk, equity risk, credit risk, interest rate risk, and liquidity risk[481]. - The company does not have counterparty credit risk with respect to trades matched on its exchanges in the U.S., Canada, and Europe, as central counterparties guarantee clearance and settlement[487]. - Cboe Clear Europe requires clearing participants to deposit collateral to mitigate credit risk, with margin deposits predominantly in cash and cash equivalents[665]. Investments and Assets - The company’s investments grew to 345.3 million in 2023, indicating a focus on expanding its investment portfolio[523]. - The company recorded an impairment charge of 36.5 million in Japannext Co., Ltd. in the fourth quarter of 2024, expanding its portfolio in the Japanese market[616]. - The company’s total equity method investments increased to 81.0 million in 2024, compared to no impairment in 2023 and 1,441.0 million in outstanding debt as of December 31, 2024, all related to Senior Notes with fixed interest rates[501]. - Cboe Clear Europe has a €1.20 billion committed syndicated multicurrency revolving credit facility, with the potential to increase to €1.7 billion under certain conditions[650]. - The future expected repayments related to the Senior Notes total 650 million due in 2027 and 51.5 million, down from $62.4 million in 2023[658]. Digital Assets and Technology - Cboe Digital liquidated all digital assets held on behalf of customers as of September 30, 2024, eliminating exposure to custody and valuation risks[498]. - The Company liquidated all digital assets held for customers on July 1, 2024, resulting in no safeguarded assets or liabilities on the balance sheets[591]. - Cboe's digital asset business will leverage its core strengths in derivatives, technology, and product innovation moving forward[539]. - The Company expects to adopt ASU 2023-08 regarding crypto assets in the first quarter of 2025, with no anticipated material impact on consolidated financial statements[593]. Regulatory and Compliance - The SEC adopted new climate disclosure rules on March 6, 2024, requiring companies to disclose material climate-related risks and management's role in addressing these risks[596]. - The SEC issued Staff Accounting Bulletin 122 on January 23, 2025, which rescinds previous guidance on accounting for digital asset obligations, with no material impact expected on consolidated financial statements[597]. - The company plans to adopt the new accounting guidance for digital assets in its financial statements for the year ending December 31, 2025[597]. - The company is monitoring ongoing legal proceedings related to the SEC's climate disclosure rules and will update financial statements as necessary[596]. Operational Highlights - Cboe Clear Europe holds material amounts of clearing participant collateral, both cash and non-cash deposits, to minimize credit risk and liquidity risks[494]. - Cboe Clear U.S. does not expect a material loss concerning credit risk on any member participant as of December 31, 2024[671]. - Cboe Clear Europe began clearing equity derivatives for ten European markets in September 2021, expanding to single stock options by November 2023[661]. - In November 2024, Cboe Clear Europe received approval to offer access to its market participants for securities financing transactions (SFT), although no trades had occurred by December 31, 2024[662].