Summary
CME Group Inc. reported solid financial performance for the nine months ended September 30, 2013, with total revenues of $2,249.3 million, remaining flat compared to the prior year. While clearing and transaction fees saw a 3% increase driven by higher contract volumes, this was offset by a notable 22% decline in market data and information services revenue. This decline was primarily attributed to the de-consolidation of its index business into the S&P/Dow Jones Indices LLC joint venture and the sale of Credit Market Analysis Ltd. Operating expenses remained largely stable year-over-year, benefiting from the aforementioned de-consolidation and sale, which offset increased compensation and benefits. Net income attributable to CME Group rose by 7% to $783.7 million for the nine-month period, translating to diluted earnings per share of $2.35, an increase from $2.20 in the prior year. The company also maintained a strong liquidity position with $2.1 billion in cash and cash equivalents. Despite some revenue pressures in specific segments, the core clearing and transaction business demonstrated resilience, supported by increased contract volumes, particularly in interest rate and metal products.
Financial Highlights
48 data points| Revenue | $714.60M |
| Operating Expenses | $314.10M |
| Operating Income | $400.50M |
| Net Income | $236.70M |
| EPS (Basic) | $0.71 |
| EPS (Diluted) | $0.71 |
| Shares Outstanding (Basic) | 332.76M |
| Shares Outstanding (Diluted) | 334.67M |
Key Highlights
- 1Total revenues for the nine months ended September 30, 2013, were $2,249.3 million, flat compared to the prior year, primarily due to increased clearing and transaction fees offset by lower market data revenues.
- 2Clearing and transaction fees increased by 3% year-over-year for the nine-month period, driven by a 9% rise in total contract volume, with interest rate products showing significant growth.
- 3Market data and information services revenue decreased by 22% for the nine months, largely due to the de-consolidation of the index business and the sale of CMA.
- 4Operating expenses remained stable for the nine months, as cost savings from the index business and CMA sale offset increased compensation and benefits.
- 5Net income attributable to CME Group increased by 7% to $783.7 million for the nine months, with diluted EPS rising to $2.35 from $2.20.
- 6The company maintained a strong liquidity position, with cash and cash equivalents totaling $2.1 billion at September 30, 2013.
- 7CME Group issued $750 million in new long-term debt (5.30% notes due 2043) and repaid maturing debt, managing its debt profile effectively.