CME today reported revenues of $796 million (Q1 $775 million) and operating income of $469 million ($451 million). Second-quarter net income attributable to CME Group was $245 million and diluted earnings per share were $0.74. On July 20, CME Group Class A common stock split 5 for 1. All share and per-share data in this release have been adjusted to reflect the stock split.
Second-quarter 2012 results included $65 million in non-operating income partially offset by $8 million in non-controlling interest related to the de-consolidation of our business contributed into S&P Dow Jones Indices, the company’s joint venture with The McGraw-Hill Companies; $12 million of compensation expenses made up of costs associated with accelerated vesting of stock-based compensation pertaining to the recent CEO transition, the company’s voluntary exit incentive plan termination payments as well as transaction related severance payments; and $9 million one-time and up-front operating expenses associated with the closing of S&P Dow Jones Indices.
Our income tax provision on a non-GAAP basis was $87 million lower than our GAAP income tax provision due primarily to a non-cash $132 million GAAP charge for establishment of deferred tax liabilities associated with the closing of S&P Dow Jones Indices. In addition, our GAAP income tax provision included other non-recurring reductions to tax expense of $36 million also primarily related to the closing. Finally, our income tax provision on a non-GAAP basis included the tax effect of the $12 million and $9 million adjustments noted above. On a non-GAAP basis, second-quarter diluted EPS would have been $0.89.1
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“It has been a challenging year for the financial industry,” said CME Group Executive Chairman and President Terry Duffy. “In light of recent events, we have intensified our efforts in working closely with Congress, regulators and the entire futures industry to strengthen customer protections and ensure the integrity of these critical markets. In addition, our primary focus is to position the company well over the long term in both exchange trading and over-the-counter clearing. We continue to gain momentum in our OTC clearing business, with several new buy- side firms clearing their first OTC swaps with CME over the last two weeks.”
FX futures performed well in June, CME achieved $128 billion in daily trade volume.