CME Group registers 24% YoY rise in net income in Q3 2015

The earnings season keeps gaining momentum, with CME Group Inc (NASDAQ:CME) adding its voice to the chorus of companies reporting strong financial results for the third quarter of 2015.

The company saw its revenues grow across commodities, financial products and market data. The robust results were also attributed to tight discipline regarding expenditure.

  • Net income attributable to CME Group amounted to $359.9 million in the third quarter to September 30, 2015, up 24.1% from the result of $290 million registered in the third quarter of 2014.
  • For the first nine months of 2015, net income attributable to CME Group reached $955.3 million, staging a rise of 16.4% from a year earlier.
  • Total revenues during the third quarter of 2015 were $850.3 million, up 11.5% from a year earlier.
  • Operating income amounted to $516.4 million, up 20% from the result of $430.4 million registered in the corresponding period a year earlier.
  • Clearing and transaction fee revenues were $715 million in the third quarter of 2015, up 11% from a year earlier. Market data revenue was $100 million, up 13% compared with the third quarter last year.
  • Third-quarter 2015 average daily volume was 14.4 million contracts, up 7% from third-quarter 2014. The number included record quarterly options average daily volume as well as double digit growth across all commodities product lines.


Management comments

“We delivered balanced organic revenue growth in the third quarter,” said CME Group Executive Chairman and President Terry Duffy. “Commodity products revenue grew by 14 percent, financial products were up 10 percent, and market data revenue rose 13 percent. This top-line performance, coupled with solid expense discipline, resulted in earnings growth above 20 percent, similar to the level of growth produced during the first half of the year. In addition, we generated a substantial amount of cash flow during the quarter, positioning us well to return a meaningful amount of capital to our shareholders in the coming months.”

“Our focused growth initiatives are significantly increasing our global activity,” said CME Group Chief Executive Officer Phupinder Gill. “For the third quarter, electronic trading revenue from customers outside the United States reached a record 32 percent. Additionally, we have made system enhancements, launched new products and heavily engaged with customers to continue to drive our expanding options business. During the quarter, we reached record levels of options volume and the highest percentage of volume traded electronically. In addition, we have been very active over the last few months partnering with global exchanges and index providers to further drive long-term growth.”

To view the official announcement from CME Group on its Q3 2015 results, click here.

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