CME Group registers 10.6% YoY increase in net income in FY 2015

CME Group Inc (NASDAQ:CME) has just posted its financial and operating metrics for the final quarter and the full year to December 31, 2015, with net income staging a strong rise year on year.

  • Full year 2015 highlights

Net income attributable to CME Group for the 12 months to December 31, 2015 amounted to $1.25 billion, up 10.6% from the result of $1.13 billion registered in the corresponding period a year earlier.

Operating income rose 12.4% year on year to $1.99 billion.

Total revenues rose 7% year on year to $3.33 billion.

  • Q4 2015 highlights

Net income attributable to CME Group for the three months to December 31, 2015 was $291.7 million, down 4.8% from the result of $306.5 million reported for the equivalent period in 2014.

Operating income was $469.9 million, down 0.3% from the same period in 2014.

Total revenues amounted to $813.8 million, down 3.3% from the final quarter of 2014.

CME Group reported FX ADV (average daily volumes) of 779,000 contracts for the fourth quarter of 2015. The result is 8.9% down from the third quarter of 2015 and 18.8% down from the fourth quarter of 2014.

  • Management comments

CME Group Executive Chairman and President Terry Duffy says,

“In 2015, we reached record levels of volume and revenue as we enabled our increasing number of customers around the world to manage risk. We saw year-over-year revenue growth in five of our six product lines, with particular strength in energy and agricultural products as well as our overall options business. Continuing this momentum, we had record monthly volume in January 2016, with more than 18 million contracts per day traded, up 16 percent. Given the underlying strength of our business, we announced a 20 percent increase in our next regular quarterly dividend to 60 cents per share. In each of the prior four years, our total dividend yield has exceeded five percent.”

CME Group Chief Executive Officer Phupinder Gill says,

“We were pleased to deliver an increase of 7 percent in revenue and 15 percent in adjusted net income during 2015, a year that many considered a challenging environment for financial services companies. We were very active during 2015 in terms of new product innovation and expanding our global partnerships, including securing the long-term rights to the FTSE Russell indexes. Looking at new products, one standout within our interest rate franchise is our recently launched Ultra 10-year treasury product, which has been the most successful start of a new contract in our long history. During the year, we increased our operating margin by reducing costs from the prior year, driving efficiency and improving our agility in serving customers globally.”

You can view the detailed CME Group report for the full year 2015 by clicking here.

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