Investing.com -- BATS Global Markets Inc (NYSE:BATS) said on Thursday that its profits over the first quarter of Fiscal Year 2016 more than doubled, ahead of the global stock exchange's successful debut as a public company earlier last month.
During the first quarter, the Kansas City-based global operator of exchanges and services for financial markets, reported earnings of $30.1 million and adjusted earnings of $35.6 million, a spike of 77% on an annual basis. Bats, which went public in mid-April, has seen its stock value soar by more than 25% from its IPO price of $14.
For the three-month period that ended on March 31, Bats finished with revenues of $510.9 million, while achieving company records for normalized EBITDA, normalized EBITDA margin and adjusted earnings. It came as the global exchange reported a market share of at least 20% in U.S. equity and European equity markets, as well as a 10.2% in U.S. Options markets. Bats also increased its Global Foreign Exchange market share to 11.8%, marking its third straight period of quarterly gains since the acquisition of institutional spot foreign exchange leader Hotspot FX in January, 2015.
"The first quarter was further evidence that our scale and low-cost operating model continue to successfully deliver positive financial results, all while we successfully executed our IPO on our own market,” said CEO Chris Concannon. “We set a quarterly earnings record while maintaining our leading market share positions in U.S. Equities, European Equities, U.S. Options, ETFs and FX."
In February, Bats received approval from the U.S. Securities and Exchange Commission (SEC) in regards to a proposed change involving the company's Client Suspension Rule. The rule will assist the company in protecting investors by taking swifter action to prevent manipulative practices, such as spoofing and layering on the Bats' Exchanges, the company said in a statement. The amended change allows Bats to crack down on the techniques in a matter of weeks instead of passing alleged violations off to regulators, which entails a lengthier process.
Bats also announced that its Board of Directors declared a regular quarterly cash dividend of 0.08 per share on the company's outstanding common stock, which is payable on September 28, 2016 to shareholders of record on September 14.
Shares in Bats jumped 0.78 or 3.02% to 24.88 in after-hours trading.