Summary
CME Group Inc. reported a revenue of $647.1 million for the first quarter of 2009, a 4% increase compared to the same period in 2008. This growth was primarily driven by the inclusion of NYMEX products and services, along with increased quotation data fees. However, operating expenses rose by 15% to $260.7 million, mainly due to higher amortization of purchased intangibles and increased compensation and benefits following the NYMEX merger. Consequently, net income declined by 30% to $199.1 million, and diluted earnings per share fell to $3.00 from $5.25 in the prior year. The company experienced a significant decrease in trading volume for interest rate products, attributed to the ongoing credit crisis and the Federal Reserve's zero interest rate policy. This decline was partially offset by the addition of NYMEX products and an increase in the average rate per contract. The balance sheet reflects a substantial decrease in total assets and liabilities compared to year-end 2008, largely due to the reduction in cash performance bonds and security deposits. The company has also refinanced debt, issuing new notes and repaying commercial paper, strengthening its liquidity position.
Financial Highlights
27 data points| Revenue | $647.10M |
| Operating Expenses | $260.70M |
| Operating Income | $386.40M |
| Net Income | $199.10M |
| EPS (Basic) | $0.60 |
| EPS (Diluted) | $0.60 |
| Shares Outstanding (Basic) | 331.51M |
| Shares Outstanding (Diluted) | 332.19M |
Key Highlights
- 1Total revenues increased by 4% to $647.1 million, driven by NYMEX integration and higher quotation data fees.
- 2Net income decreased by 30% to $199.1 million, impacted by rising operating expenses and stock issuances related to the NYMEX merger.
- 3Diluted earnings per share fell to $3.00 from $5.28 in the prior year's quarter.
- 4Interest rate product trading volumes significantly declined due to the credit crisis and low interest rates.
- 5The company issued $750 million in fixed rate notes due 2014 to repay commercial paper and for general corporate purposes.
- 6Operating expenses increased by 15% to $260.7 million, largely due to amortization of purchased intangibles and higher compensation costs post-NYMEX acquisition.
- 7Cash flow from operations decreased by 32% to $254.7 million.