CME Group Posts Strong First Quarter Earnings

On Wednesday, CME Group Inc. reported financial results for the first quarter of 2020.

The company reported revenue of $1.5 billion and operating income of $960 million for the first quarter of 2020. Net income was $766 million 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. Financial results presented on an adjusted basis for the first quarter of 2020 and 2019 exclude certain items, which are detailed in the reconciliation of non-GAAP results.

“COVID-19流行创造了前所未有的challenges, taking a devastating toll on human life and creating extraordinary uncertainty around the world," says CME Group Chairman and Chief Executive Officer Terry Duffy. "Our sincere thanks go out to the entire medical community and the many first responders aggressively fighting this disease on the front lines, as well as those helping to keep goods moving, grocery stores and pharmacies open and other essential services operating for the benefit of all of us. I am extremely proud of the resilience demonstrated by CME Group employees, most of whom are working remotely, to ensure our systems and markets continue to operate efficiently despite periods of extreme volatility. During the quarter, we saw significantly increased levels of client hedging and risk transfer, across all products and time zones. Though the long-term effects of the pandemic are still unknown, we remain focused on the health and safety of the entire CME Group community, as well as on facilitating risk management for our market participants during these extraordinary times and beyond."

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. The company has returned approximately $13.5 billion to shareholders in the form of dividends since the implementation of the variable dividend policy in early 2012.