CME Group Publishes Higher 2022 Results, Beats Forecast

CME Group’s Quarterly
Profits Beats Estimates

According
to the financial report published on Wednesday, the exchange operator achieved a
slightly lower revenue ($1.2 billion) than in the previous quarter ($1.22
billion), but higher than in the same quarter a year ago ($1.15 billion).

The net
income on an adjusted basis stood at $698 million in the period, translating to
$192 per share, beating analysts’ estimates of $188 per share. The final net
income came in at $638 million or $1.75 per single share. It was lower by almost
$42 million compared to the third quarter, however, $16 million higher than the
$613.3 million reported in the same period in 2021.

“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,” CME
Group commented on ADV statistics.

In the same
period, the transaction and clearing fees revenue reached $981 million, while
the total average rate per contract stood at $0.651. Market data revenue came
in at $153 million, being modestly lower than the $154 million reported in the
previous quarter.

“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,” Terry Duffy, the Chairman and
Chief Executive Officer at CME Group, said.

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CME Group Reports $5b
Revenue in 2022

When it
comes to the full-year 2022, the total revenue of CME Group stood at $5.0
billion, while operating income reached $3.0 billion. These numbers are higher
than the 2021 results when revenue was $4.7 billion and operating income reached
$2.6 billion.

Net income was
$2.7 billion and on an adjusted basis, it came in at $2.9 billion. Diluted earnings
per common share on a nonadjusted and adjusted basis stood at $7.40 and $7.97,
respectively.

“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,” Duffy added.

CME Reported Record ADV

More than a
month before the publication of the financial report, CME Group posted an ADV
record of 23.3 million contracts in 2022, which represents a 19% increase from
its performance in 2021.

“ADV
increased 6% in the fourth quarter to 21.8 million contracts, and ADV increased
7% in December to 19.2 million contracts,” CME Group announced.

A few days
later, the company additionally reported a record-breaking international ADV of
6.3 million contracts. According to CME Group, the 15% surge compared to 2021
was possible due to the visible growth in the popularity of forex
Forex

Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi

Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi
Read this Term and equity
products, rising 22% and 26%, respectively.