CME Group Inc (NASDAQ:CME), the derivatives marketplace, has earlier today reported its operating and financial metrics for the second quarter of 2015.
Profits and revenues for the three-month period to June 30, 2015, rose in annual terms but lagged behind the results recorded in the first quarter of 2015. The picture painted by Forex volumes results was similar, as the comparisons were solid in annual terms and not that rosy in quarterly terms.
Let’s check out the particular metrics.
- Net income attributable to shareholders in the company amounted to $265 million in the second quarter of 2015, down 19.8% from the result recorded in the first quarter of 2015 and up 0.5% from the result recorded in the second quarter of 2014.
- Total revenues for the second quarter of 2015 amounted to $820 million, down 0.6% from first quarter of 2015 and up 12% from the second quarter of 2014.
- Average daily Forex volumes totaled 903,000 contracts in the second quarter of 2015, down 5.4% from the 954,000 ADV recorded in the first quarter of 2015 and up 41.5% from the second quarter of 2014.
- Second-quarter 2015 average daily volume was 13.3 million contracts, up 6% from the second quarter of 2014, including average daily volume records in agricultural commodities and weekly treasury options.
“The organic revenue growth of 12 percent we achieved in the second quarter is a testament to the strength and diversity of our business model,” said CME Group Executive Chairman and President Terry Duffy. “During the quarter, revenue from agricultural commodities, foreign exchange and energy each rose by more than 20 percent. Total average daily volume improved steadily after a slow April, and we set quarterly volume records in weekly treasury options and heating oil, along with wheat and soybean products. In addition, options volume continued to expand, with volumes up 13 percent during the quarter, and options on our CME Globex platform up 29 percent.”
“Total expenses decreased during the second quarter, which boosted our operating margin from the mid 50 percent range a year ago to over 60 percent,” said CME Group Chief Executive Officer Phupinder Gill. “We remain focused on driving efficiency throughout the organization and eliminating redundancy to improve agility and customer responsiveness. As part of this effort, we have closed most of our futures trading pits, reduced overall headcount and consolidated data centers.”
“Our investments to expand our business around the world continue to gain traction, with 22 percent volume growth in Asia, 10 percent in Europe and 6 percent in Latin America. In summary, strong top-line growth coupled with expense discipline resulted in adjusted earnings per share growth of 23 percent.”
To view the official announcement by CME Group, click here.