CME Group registers rise in net income, revenues in Q1 2023
International derivatives marketplace CME Group Inc. (NASDAQ:CME) today reported financial results for the first quarter of 2023.
The company reported revenue of $1.4 billion for the first quarter of 2023, up from $1.3 billion in the corresponding quarter a year earlier. Operating income for the first three months of 2023 amounted to $914 million, higher than the result of $859 million registered in the year-ago quarter.
Net income was $884 million in the first quarter of 2023, up from $711 million in the first quarter of 2022. Diluted earnings per common share were $2.43 in the first quarter of 2023. On an adjusted basis, net income was $882 million and diluted earnings per common share were $2.42.
“As global market participants sought to manage risk across asset classes, we saw a flight to futures, resulting in our second-highest quarterly revenue, highest adjusted net income and highest adjusted earnings per share ever,” said Terry Duffy, CME Group Chairman and Chief Executive Officer.
“During the quarter, our total daily volume surpassed 25 million contracts 28 times, including a new single-day volume record of 66.3 million contracts on March 13. Of particular note was our double-digit growth in options and interest rate products, including the growth in our SOFR derivatives complex, driven by ongoing Fed policy changes and regional bank stress. Looking ahead, we expect risk management will continue to be more important than ever, and we will remain focused on meeting our clients’ needs in this volatile environment.”
First-quarter 2023 average daily volume (ADV) was 26.9 million contracts. Non-U.S. ADV reached 7.2 million contracts, which included the second-highest quarterly ADV across EMEA, Asia and Latin America.
Clearing and transaction fees revenue for first-quarter 2023 totalled $1.2 billion. The total average rate per contract was $0.664. Market data revenue totalled $166 million for first-quarter 2023.
As of March 31, 2023, the company had approximately $1.7 billion in cash (including $100 million deposited with Fixed Income Clearing Corporation (FICC) and included in other current assets) and $3.4 billion of debt.
The company paid dividends of approximately $2.0 billion during the first quarter of 2023. The company has returned over $21.0 billion to shareholders in the form of dividends since the implementation of the variable dividend policy in early 2012.