CME Group Secures Record Profit for Second Quarter In A Row

CME’s total operating income for Q2 2017 yielded a profit of $605.6 million.

Chicago-based CME Group (NASDAQ: CME), one of the world’s paramount exchange operators, has published its financial results for the second quarter of 2017, which were largely better when weighed against its 2016 equivalent, according to a CME statement.

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For Q2 2017, CME Group revealed that revenues pointed moderately higher compared to a year earlier, coming in at $925 million, up 2 percent from $906 million in the Q2 2016.

CME’s total operating income for Q2 2017 yielded a profit of $605.6 million – this represents an increase of 7.5 percent year-on-year from $563.3 million in 2016.

Another area of strength for the quarter was the group’s earnings per share (EPS), which rose to $1.22 in Q2 2017, up 28.4 percent year-on-year from $0.95 in the same period a year earlier.

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Net income for Q2 2017 was also up year-on-year by a factor of 30 percent after recording $416 million compared to $320 million in Q2 2016. On an adjusted basis, net income was a record $419 million and diluted earnings per share were also a record $1.23.

The group’s solid first quarter financial performance was driven by the second highest quarterly average daily volume to date, including record volumes in energy, and overall options and electronic options trading.

CME has notched growth across most of its six product lines in Q2 2017. The standout performance showed an average daily volume of 16.5 million contracts, which correlates to a gain of 9 percent year-on-year from 15,082 million contracts in Q2 2016.

The Q2 financial release follows on the heels of last month’s volumes report that showed flat performance in June 2017. In terms of CME Group’s average daily foreign exchange (FX) volumes, this figure was higher in June, coming in at coming in at 1,014,000 contracts per day vs. 823,000 contracts per day in May 2017, or 23.2 percent higher month-over-month. This was attributed to movements in the USD, which saw wide movement against most of the majors, namely the EUR.

Commenting on the results, CME Group Chairman and CEO Terry Duffy “We drove strong growth in key product areas, with average daily volume up nine percent for the second quarter. We delivered double-digit increases in our interest rate and energy product lines, and, for the third quarter in a row, we had record volume in metals.  Globally, volumes from outside the United States grew 16 percent, with record quarterly volume from both Europe and Asia.  In addition, our focus on expense discipline resulted in peak levels of adjusted net income and earnings per share for the quarter.”

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