CME GROUP INC. Quarterly Report for Q1 Ended Mar 31, 2013

Summary

CME Group Inc. reported its first quarter 2013 results, showing a decrease in total revenues by 7% to $718.6 million compared to the prior year quarter, primarily driven by lower market data and information services revenue and a reduction in clearing and transaction fees due to a lower average rate per contract. Despite the revenue decline, operating expenses were also reduced by 3% to $313.1 million, largely due to the contribution of certain Dow Jones Index assets and the sale of Credit Market Analysis Ltd. Net income attributable to CME Group decreased by 12% to $235.8 million, leading to diluted earnings per share of $0.71, down from $0.80 in the first quarter of 2012. The company maintained a strong liquidity position with $1.84 billion in cash and cash equivalents. Management highlighted a stable operating margin of 56.4% and reiterated confidence in maintaining an investment grade rating.

Key Highlights

• 1Total revenues declined 7% year-over-year to $718.6 million, primarily due to lower market data revenue and reduced clearing and transaction fees.
• 2Operating expenses decreased by 3% to $313.1 million, aided by the contribution of Dow Jones Index assets and the sale of CMA.
• 3Net income attributable to CME Group fell 12% to $235.8 million, resulting in diluted EPS of $0.71, down from $0.80 in the prior year.
• 4Contract volume saw a slight decrease of 2%, while average daily volume increased by 2% due to fewer trading days in the current quarter.
• 5Interest rate products volume was flat, with increases in long-term rates offset by declines in short-term rates.
• 6Equity and foreign exchange product volumes showed increases, driven by improved macroeconomic conditions and currency volatility respectively.
• 7The company maintained a solid liquidity position with $1.84 billion in cash and cash equivalents at the end of the quarter.

Frequently Asked Questions