CME Group marks drop in net income in Q2 2020

Maria Nikolova

Net income was $503 million, down from $514 million a year earlier.

International derivatives marketplace CME Group Inc (NASDAQ:CME) today posted its financial results for the second quarter of 2020.

The company reported revenue of $1.2 billion and operating income of $638 million for the second quarter of 2020. This compares with revenue of $1.3 billion and operating income of $699 million in the second quarter of 2019.

Net income was $503 million, down from $514 million a year earlier. Diluted earnings per share were $1.40, down from $1.43 in the corresponding period a year earlier. On an adjusted basis, net income was $583 million and diluted earnings per share were $1.63.

CME Group Chairman and Chief Executive Officer Terry Duffy commented:

“Despite the difficult circumstances the coronavirus pandemic has caused around the world, our markets have continued to help clients manage their risk and navigate uncertainty. During this time, we have continued to deliver innovative new products, including the reintroduction of our 3-Year Treasury Note futures earlier this month, as well as new options on our highly successful Micro E-mini Equity futures that will begin trading in August. We also remain focused on the increased value we will provide to market participants through the migration of our BrokerTec business to CME Globex in Q4”.

Second-quarter 2020 ADV was 17.6 million contracts, including non-U.S. ADV of 4.9 million contracts.

As of June 30, 2020, the company had approximately $1.5 billion in cash (including $125 million deposited with Fixed Income Clearing Corporation (FICC) and included in other current assets) and $3.4 billion of debt. The company paid dividends of $304 million during the second quarter.

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