CME Group registers rise in revenues in Q4 2022
International derivatives marketplace CME Group Inc. (NASDAQ:CME) today reported financial results for the fourth quarter and full year of 2022.
The company reported revenue of $1.2 billion and operating income of $668 million for the fourth quarter of 2022. Net income was $638 million and diluted earnings per common share were $1.75. On an adjusted basis, net income was $698 million and diluted earnings per common share were $1.92.
Total revenue for full-year 2022 was $5.0 billion and operating income was $3.0 billion. Net income was $2.7 billion and diluted earnings per common share were $7.40. On an adjusted basis, net income was $2.9 billion, and diluted earnings per common share were $7.97.
“Last year was the best year in our history as global market participants turned to CME Group to navigate tremendous economic and geopolitical uncertainty, generating a 19% increase in average daily volume to a record 23.3 million contracts,” said Terry Duffy, CME Group Chairman and Chief Executive Officer.
“Our 2022 performance was driven by new records in financial products, options on futures, and volume from outside the United States. In addition, CME Group had its best Q4 ever, with record ADV of 21.8 million contracts resulting from double-digit growth in equity index and foreign exchange. Significantly, our SOFR futures and options also hit new highs during what was a historic year for the LIBOR transition, and these contracts now serve as the leading tools for hedging short-term interest rates.
As we kick off this new year, we remain focused on delivering the products and services our clients need to manage risk and invest in new opportunities in 2023.”
Fourth-quarter 2022 average daily volume (ADV) was 21.8 million contracts, up 6% versus fourth-quarter 2021. Non-U.S. ADV for full-year 2022 reached a record 6.3 million contracts, up 15% compared with the same period in 2021.
Clearing and transaction fees revenue for fourth-quarter 2022 totalled $981 million. The total average rate per contract was $0.651. Market data revenue totalled $153 million for fourth-quarter 2022.
As of December 31, 2022, the company had approximately $2.8 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 declared dividends during 2022 of $3.0 billion, including the annual variable dividend of $1.6 billion. The company has returned over $20.5 billion to shareholders in the form of dividends since the implementation of the variable dividend policy in early 2012.
In addition, on February 2, 2023, the company declared a first-quarter dividend of $1.10 per share, a 10% increase from the prior level of $1.00 per share.