Chicago-based operator of commodity futures marketplaces, CME Group, with some of the biggest commodities exchanges across the globe, including the Chicago Mercantile Exchange (CME) under its subsidiaries, reported today its consolidated financial results for the fourth-quarter (Q4) of 2013. The group’s report reflects a second quarter of continued decreases in revenues and earnings for the CME.
The CME reported revenues of $687 million and operating income of $323 million for the fourth-quarter of 2013. Net income attributable to CME Group was $193 million and diluted earnings per share was $0.58. Excluding the items noted in the reconciliation, adjusted earnings per share would have been $0.64.
On a quarter to quarter basis, today’s figures reveal a 3.9% drop in revenues, 19.5% drop in operating income and a 18.6% drop in net income in Q4 2013. Additionally, diluted earnings per share decreased by 18.3% and excluding items noted in the reconciliation, adjusted earnings per share went down by 14.7%.
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In the previous quarterly financial results report, the group reported revenues of $715 million and operating income of $401 million for the third-quarter of 2013. Net income attributable to CME Group was $237 million and diluted earnings per share was $0.71. Excluding items noted in the reconciliation, adjusted earnings per share would have been $0.75.
As of December 31, 2013, the CME had $2.5 billion of cash and marketable securities and $2.9 billion of debt. The group declared dividends associated with 2013 of $1.5 billion, including the annual variable dividend for 2013 which was paid in January 2014. The annual variable dividend associated with 2013 totaled approximately $870 million and was twice the size of the annual variable dividend associated with 2012.
“I am very pleased with fourth-quarter results, highlighted by double-digit average daily volume growth in our futures and options complex when compared with last year,” said CME Group Chief Executive Officer, Phupinder Gill. Preferring to comment only on volumes and not revenues the CEO said: “This strong performance was driven by a 29% increase in interest rate volume. The new year is off to a good start, with increased volatility in interest rate, equity, and energy markets resulting in an increase of 13 percent in average daily volume in January.”
Fourth-quarter 2013 average daily volume was 11.3 million contracts. Fourth-quarter total average rate per contract was 78.0 cents, up from 76.2 cents in third-quarter 2013, driven primarily by a higher proportion of total volume coming from energy and agricultural products, which have higher average fees.