On Thursday before the bell, CME Group Inc. (NASDAQ: CME) announced its?first-quarter profit increased 13% on rising trading volume and revenue growth.
First quarter 2014 revenues were $777 million, up from the previous year’s $718.6 million. This exceeded analysts’ estimates of $776 million.
Operating income was $454 million. Net income was?$267 million ($0.79 earnings per share), up from last year’s $235.8 million ($0.71 earnings per share).
Excluding the items noted in the reconciliation, adjusted earnings per share would have been?$0.83.?
CME Group Executive Chairman and President?Terry Duffy said of the report, “In first-quarter 2014, we posted industry-leading volume growth of 9 percent, driven by our interest rate, equity index and agricultural products. Following Federal Reserve comments related to quantitative easing and the target federal funds rate, our Eurodollar futures reached a daily record of 6 million contracts traded on?March 19. Further, market participants have begun to adjust their risk management activities in the short end of the interest rate curve, as evidenced by our 47 percent growth in Eurodollar volume in the first quarter followed by 73 percent growth in April.”
CME Group Chief Executive Officer?Phupinder Gill, added,?”In 2014, we continue to meet the needs of our customers by delivering innovative new products and services. “We recently launched our?London-based derivatives exchange, CME Europe, allowing our European clients to manage risk and access liquidity in their local jurisdiction.? With London as the center of global FX trading, we will focus on FX futures initially, and add other products going forward.? We also launched a Euro-denominated deliverable swap futures product, and plan to launch a North American physically delivered?aluminum futures?contract in second-quarter 2014.”
Other first quarter 2014 numbers included average daily volume of 13.7?million contracts, up 9 percent from 2013’s first quarter 2013; interest rate volume increased 19 percent.
Clearing and transaction fee revenues were?$652 million, up 10 percent compared with the same period last year.
First-quarter total average rate per contract was?76.7 cents, down from?78.0 cents?in fourth-quarter 2013, driven primarily by a higher proportion of total volume coming from interest rate products, which have lower average fees.?
As of?March 31, 2014, the company had?$1.1 billion?of cash and marketable securities and?$2.1 billion?of debt after paying off?$750 million?of debt in February.