CME Group’s net income rises to $766m in Q1 2020

Maria Nikolova

During the quarter, CME Group saw significantly increased levels of client hedging and risk transfer, across all products and time zones.

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

The company reported revenue of $1.5 billion for the first three months of 2020, up from $1.2 billion in the year-ago quarter. Operating income for the first quarter of 2020 was $960 million, up from $631 million a year earlier.

Net income was $766 million, up from $497 million a year earlier, and diluted earnings per share were $2.14. On an adjusted basis, net income was $836 million and diluted earnings per share were $2.33.

CME Group Chairman and Chief Executive Officer Terry Duffy noted that during the quarter, the Group saw significantly increased levels of client hedging and risk transfer, across all products and time zones.

First-quarter 2020 average daily volume (ADV) included a quarterly record overall, as well as across EMEA and APAC. First-quarter 2020 ADV was 27 million contracts, up 45% compared with the first quarter of 2019. Non-U.S. ADV for first-quarter 2020 reached 7.3 million contracts, up 56% compared with first-quarter 2019, including 54% growth in Europe, 73% growth in Asia and 21% growth in Latin America.

Clearing and transaction fees revenue for first-quarter 2020 totaled $1.3 billion. The total average rate per contract was $0.676, down 6% compared with fourth-quarter 2019. Market data revenue totaled $131.5 million for first-quarter 2020.

As of March 31, 2020, the company had approximately $1.0 billion in cash (including $125 million deposited with Fixed Income Clearing Corporation (FICC) and included in other current assets) and $3.5 billion of debt.

The company paid dividends during the first quarter of $1.2 billion, including the annual variable dividend for 2019 of $894 million, which was paid in January 2020.

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