On October 25, 2023, CME Group Inc (CME, Financial) released its financial results for the third quarter of 2023. The company reported a revenue of $1.3 billion and an operating income of $820 million. The net income for the quarter was $750 million, and diluted earnings per common share were $2.06. On an adjusted basis, net income was $818 million and diluted earnings per common share were $2.25.
Performance Highlights
CME Group delivered its ninth consecutive quarter of double-digit growth in adjusted earnings per share and a 9% increase in revenue. The company's performance was driven by market participants turning to its markets to mitigate their business risks amid accelerating geopolitical uncertainty. The quarter saw a particularly strong performance, with interest rate volume increasing 6%, driven by an 18% rise in Treasury futures ADV and records in Ultra 10-Year and Ultra T-Bond futures. The company also generated significant growth across agricultural, energy, and options products.
Financial Details
Third-quarter 2023 average daily volume (ADV) was 22.3 million contracts. Non-U.S. ADV reached 6.5 million contracts, up 7% from third-quarter 2022, including 16% growth in interest rates and double-digit growth across agricultural, energy, and metals products. Clearing and transaction fees revenue for third-quarter 2023 totaled $1.1 billion. The total average rate per contract was $0.707. Market data revenue totaled $168 million for third-quarter 2023.
Balance Sheet and Cash Flow
As of September 30, 2023, the company had approximately $2.5 billion in cash and $3.4 billion of debt. The company paid dividends of approximately $400 million during the third quarter of 2023. The company has returned over $22 billion to shareholders in the form of dividends since the implementation of the variable dividend policy in early 2012.
CEO Commentary
CME Group delivered its ninth consecutive quarter of double-digit growth in adjusted earnings per share and a 9% increase in revenue as market participants continued turning to our markets to mitigate their business risks amid accelerating geopolitical uncertainty," said CME Group Chairman and Chief Executive Officer Terry Duffy.
Outlook
CME Group Inc (CME, Financial) continues to demonstrate strong financial performance and remains committed to delivering value to its shareholders. The company's robust results reflect its strategic initiatives and the strength of its diverse global business. CME Group will continue to focus on driving growth and enhancing shareholder value in the coming quarters.
