CME Group reports 15% YoY drop in revenue for the third quarter

Derivatives marketplace CME Group released its financial results for the third quarter of 2020.

The company registered revenue of $1.1 billion for the third quarter, 8% below the $1.2 billion in second quarter of 2020. The number is 15.4% lower than the same period the previous year when it was $1.3 billion.

Operating income came at $525 million for the third quarter of 2020, down by 17.7% compared to the previous quarter when it reached $638 million and 23.4% compared to the previous year.

CME Group reported net income of $412 million and diluted earnings per share were $1.15. On an adjusted basis, net income was $495 million and diluted earnings per share were $1.38. Net income was 18% lower than previous quarter and 35.2% lower than the previous year.

CME Group

CME Group Chairman and Chief Executive Officer Terry Duffy commented:

Terry Duffy, CME Group

Terry Duffy

Despite the many challenges created by the ongoing pandemic, our metals, equities, agriculture and data services businesses showed strong performance during the third quarter. Likewise, we continued to innovate amid the extreme uncertainty, announcing a number of new products and services across asset classes, including Micro E-mini options and Nasdaq Veles California Water Index futures.  In Q4, we remain focused on adding new value through the migration of BrokerTec onto CME Globex later this year, as well as providing risk management tools to help our global clients as they continue to navigate through this difficult economic environment.

The ADV for Q3 2020 was 15.6 million contracts, including non-US ADV of 4.4 million contracts.

Clearing and transaction fees revenue for Q3 2020 ammounted to $835.4 million. The total average rate per contract was $0.716.  Market data revenue was $139.4 million for Q3 2020.

As of 30 September, 2020, the company had $1.5 billion in cash and $3.4 billion of debt.  The company paid dividends in the amount of $304 million during the third quarter. CME Group has returned $14.1 billion to shareholders in the form of dividends since the implementation of the variable dividend policy in early 2012.

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