In This Article:
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Revenue: Over $1.6 billion, up 10% from Q1 2024.
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Average Daily Volume (ADV): 29.8 million contracts, highest in CME Group's history, up 13% year-over-year.
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Adjusted Net Income: Exceeded $1 billion, up 12% from Q1 2024.
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Adjusted Diluted Earnings Per Share: $2.80, up 12% year-over-year.
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Clearing and Transaction Fees: $1.3 billion, up 11% year-over-year.
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Market Data Revenue: $195 million, up 11% year-over-year.
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Adjusted Operating Income: $1.2 billion, up 14% year-over-year.
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Adjusted Operating Margin: 71.1%, up from 68.9% in Q1 2024.
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Adjusted Effective Tax Rate: 23.1%.
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Capital Expenditures: Approximately $12 million.
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Cash: $1.6 billion at the end of the quarter.
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Dividends Paid: Approximately $2.6 billion during the quarter.
Release Date: April 23, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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CME Group Inc (NASDAQ:CME) reported record quarterly revenue of over $1.6 billion, marking the highest volume revenue, operating income, and diluted earnings per share in the company's history.
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The first quarter saw a 13% increase in average daily volume (ADV) to 29.8 million contracts, with growth across all six asset classes, including record volumes in interest rates, equities, agricultural commodities, and foreign exchange.
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International business achieved a record average of 8.8 million contracts per day, up 19% from the previous year, with strong growth in EMEA and APAC regions.
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CME Group Inc (NASDAQ:CME) continues to innovate with new product offerings, such as BrokerTec Chicago and FX Spot Plus, enhancing links between cash and futures markets.
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The company maintained strong cost discipline, resulting in an adjusted operating margin of 71.1%, up from 68.9% in the same period last year.
Negative Points
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Despite the strong performance, the average rate per contract decreased by 1% from the prior year, indicating potential pricing pressure.
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There are concerns about potential deleveraging in certain pockets, such as agricultural futures, despite overall open interest growth.
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The company faces challenges in maintaining momentum in the face of geopolitical uncertainties and market volatility.
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CME Group Inc (NASDAQ:CME) is cautious about the regulatory approval timeline for the sale of its OSTTRA joint venture, which could impact capital allocation plans.
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The company anticipates increased expenses related to technology and professional fees as it continues to invest in cloud migration and other projects.
Q & A Highlights
Q: Can you discuss why there hasn't been significant deleveraging despite increased margin requirements and volatility? A: Terrence Duffy, Executive Chairman and CEO, explained that the current market environment is unprecedented with geopolitical tensions and high debt levels, making it difficult for participants to reduce risk. He noted that the need to manage risk in uncertain times is driving continued engagement with CME's products, preventing broad-based deleveraging.