CME Group (NASDAQ: CME), which operates a major US derivatives exchange , has published its quarterly and yearly financial results for 2022, with revenues coming in at $1.2 billion and $5.0 billion, respectively.
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, it was $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 and equity products, rising 22% and 26%, respectively.
In the meantime, the single-day volume of SOFR options and futures contracts hit a record 7.56 million on 12 January 2023. It came with a record open interest rate of 35.7 million contracts on the same day.
