CME Group Inc. Reports Strong First-Quarter 2017 Financial Results

CME Group Inc. (NASDAQ: CME) today reported revenue of $929 million and operating income of $601 million for the first quarter of 2017.  Net income was $400 million and diluted earnings per share were $1.18.  On an adjusted basis, net income was a record $416 million and diluted earnings per share were a record $1.22.  Financial results presented on an adjusted basis for the first quarters of 2017 and 2016 exclude certain items, which are detailed in the reconciliation of non-GAAP results.¹

“At a time of increased global uncertainty, our diverse products and product extensions provide customers with highly effective ways to manage risks across all major asset classes,” said CME Group Chairman and Chief Executive Officer Terry Duffy.  “This is reflected in our record first-quarter results, which included our largest quarterly average daily volume ever, with record volumes in interest rate futures and options, metals futures and equity options.  Our success is further evidenced by the record open interest of more than 123 million contracts we hit during the first quarter.  At the same time, we continue to focus on operational efficiency and expense discipline.  This gives us the opportunity to invest in our long-term growth initiatives while returning excess cash to our shareholders.”

First-quarter 2017 average daily volume was a record 17.1 million contracts, up 1 percent compared with first-quarter 2016.  Clearing and transaction fee revenue was $792 million, down 1 percent compared with first-quarter 2016.  First-quarter 2017 total average rate per contract was 73.1 cents, flat with fourth-quarter 2016.  Market data revenue was $97 million, down 5 percent compared with the first quarter last year.

As of March 31, 2017, the company had $1.4 billion of cash and marketable securities and $2.2 billion of long-term debt.  The company paid dividends during the first quarter of $1.3 billion, consisting of the annual variable dividend for 2016 of $1.1 billion and the regular first-quarter dividend of $223 million.  The company has returned more than $7.7 billion to shareholders in the form of dividends since the implementation of the variable dividend policy in early 2012.

1. A reconciliation of the non-GAAP financial results mentioned to the respective GAAP figures can be found within the Reconciliation of GAAP to non-GAAP Measures chart at the end of the financial statements and earnings presentation materials.