CME Group registers rise in net income in 2019

Maria Nikolova

Net income was $2.1 billion and diluted earnings per share were $5.91 in 2019, the company reports.

International derivatives marketplace CME Group Inc (NASDAQ:CME) has earlier today posted its financial report for the fourth quarter and full year of 2019.

For the fourth quarter of 2019, the company reported revenue of $1.1 billion, down from $1.2 billion in the year-ago period. Fourth-quarter net income was $469.5 million, up $383.5 million registered in the corresponding period a year earlier.

Total revenue for full-year 2019 was $4.9 billion, up from $4.3 billion a year earlier. Net income was $2.1 billion and diluted earnings per share were $5.91. This compares with net income of $1.96 billion and diluted earnings per share of $5.71 a year earlier. On an adjusted basis, net income was $2.4 billion, and diluted earnings per share were $6.80.

CME Group Chairman and Chief Executive Officer Terry Duffy commented:

“During 2019, we delivered significant client value and efficiencies through the continued, successful integration of the NEX business and the introduction of innovative new products. At the same time, international clients turned to our markets to manage risk in record numbers, driven by double-digit increases in Asia and Latin America. Year to date, trading volume has increased, especially in commodities, which points to the diversity of our product offering amid rising volatility and uncertainty”.

“Looking ahead, we remain focused on a number of integration milestones, including the launch of BrokerTec fixed income markets alongside our benchmark futures and options on CME Globex in 2020,” Mr Duffy added.

Fourth-quarter 2019 average daily volume (ADV) was 16.9 million contracts, down 19% compared with the strong fourth-quarter 2018. Non-U.S. ADV for full-year 2019 reached a record 4.9 million contracts, up 10% compared with full-year 2018, including 7% growth in Europe, 20% growth in Asia and 47% growth in Latin America.

Clearing and transaction fees revenue for fourth-quarter 2019 totaled $901 million. The total average rate per contract was $0.717, up 3% compared with third-quarter 2019. Market data revenue totaled $130 million for fourth-quarter 2019.

As of December 31, 2019, the company had approximately $1.7 billion in cash (including $100 million deposited with Fixed Income Clearing Corporation (FICC) and included in other current assets) and $3.7 billion of debt.

The company declared dividends during 2019 of $2 billion, including the annual variable dividend of $894 million.

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