CME Group Reports Revenues and Volumes for Q2 2015

As of June 30, 2015, the company has $1.2 billion of cash and marketable securities and $2.2 billion of long-term

CME Group Inc. (NASDAQ: CME) today reported revenues of $820 million and operating income of $495 million for the second quarter of 2015. Net income was $265 million and diluted earnings per share were $0.78.

Second-quarter 2015 average daily volume at the CME Group was 13.3 million contracts, up 6 percent from second-quarter 2014 and included average daily volume records in agricultural commodities and weekly treasury options. Clearing and transaction fee revenues were $682 million, up 12 percent compared with second-quarter 2014. Market data revenue was $103 million, up 15 percent. Second-quarter 2015 total average rate per contract was 77.7 cents, up from 75.3 cents in first-quarter 2015, driven primarily by a higher proportion of total volume coming from commodities products, which have higher average fees.

Earlier this month, the CME Group reported that its FX volume averaged 987,000 contracts per day in June 2015, up 29 percent from June 2014 and 18 percent from May of this year. On a quarterly basis the comparison is less favorable to the CME Group, down 5.4 percent in Q2 to 903,000.

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“The organic revenue growth of 12 percent we achieved in the second quarter is a testament to the strength and diversity of our business model,” said CME Group Executive Chairman and President Terry Duffy. “During the quarter, revenue from agricultural commodities, foreign exchange and energy each rose by more than 20 percent. Total average daily volume improved steadily after a slow April, and we set quarterly volume records in weekly treasury options and heating oil, along with wheat and soybean products. In addition, options volume continued to expand, with volumes up 13 percent during the quarter, and options on our CME Globex platform up 29 percent,” he added.

“Total expenses decreased during the second quarter, which boosted our operating margin from the mid 50 percent range a year ago to over 60 percent,” said CME Group Chief Executive Officer Phupinder Gill. “We remain focused on driving efficiency throughout the organization and eliminating redundancy to improve agility and customer responsiveness. As part of this effort, we have closed most of our futures trading pits, reduced overall headcount and consolidated data centers. Our investments to expand our business around the world continue to gain traction, with 22 percent volume growth in Asia, 10 percent in Europe and 6 percent in Latin America. In summary, strong top-line growth coupled with expense discipline resulted in adjusted earnings per share growth of 23 percent,” he concluded.

As of June 30, 2015, the company has $1.2 billion of cash and marketable securities and $2.2 billion of long-term debt. In June, the company also paid out $168 million in its regular quarterly dividend of 50 cents per share.

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