Cboe(CBOE)2025-02-21 13:17Financial Performance - Total revenues for 2024 reached $4,094.5 million, an increase of 8.5% from $3,773.5 million in 2023[525]. - Net income for 2024 was $764.9 million, slightly up from $761.4 million in 2023, resulting in basic earnings per share of $7.24[525]. - Operating income for 2024 was $1,098.4 million, compared to $1,057.9 million in 2023, reflecting a stable operating performance[525]. - The company reported a comprehensive income of $725.9 million for 2024, down from $783.0 million in 2023, impacted by foreign currency translation adjustments[528]. - Total current assets increased to $2,479.1 million in 2024, up from $1,979.3 million in 2023, primarily driven by cash and cash equivalents rising to $920.3 million[523]. - Total liabilities increased slightly to $3,509.5 million in 2024 from $3,502.5 million in 2023, with long-term debt remaining stable at $1,441.0 million[523]. - The total stockholders' equity increased to $4,279.6 million in 2024, up from $3,985.0 million in 2023, indicating a solid financial foundation for future growth[523]. - Cash dividends on common stock increased to $2.36 per share in 2024, up from $2.10 in 2023 and $1.96 in 2022, totaling $249.4 million in 2024[534]. - Net cash provided by operating activities for 2024 was $1,100.6 million, compared to $1,075.6 million in 2023 and $651.1 million in 2022[534]. Currency and Risk Management - A 10% adverse currency fluctuation would impact revenues less cost of revenues by $11.9 million in Euros, $6.1 million in British Pounds, and $3.0 million in Canadian Dollars[483]. - A 10% adverse currency fluctuation would impact consolidated equity by $19.8 million in Euros, $63.6 million in British Pounds, and $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 $383.7 million in 2024, up from $345.3 million in 2023, indicating a focus on expanding its investment portfolio[523]. - The company recorded an impairment charge of $11.1 million on minority investments in 2024, reflecting management's assessment of fair value[616]. - The company invested $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 $321.3 million in 2024, reflecting strategic growth in its investment portfolio[608]. - The company recorded an impairment of intangible assets or goodwill of $81.0 million in 2024, compared to no impairment in 2023 and $460.9 million in 2022[534]. Debt and Financing - The company had $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 $1.45 billion, with $650 million due in 2027 and $800 million thereafter[657]. - Interest expense for the year ended December 31, 2024, was $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].