CME Group Net Income Falls 31 Percent as Rates Volume Decreases
CME Group Inc. (CME), the world’s largest futures market, said third-quarter profit fell 31 percent as trading in interest-rate contracts, its largest asset class, declined the same amount.
Net income dropped to $218 million, or 66 cents a share, from $316 million, or 95 cents a share, a year earlier, Chicago- based CME said today in a statement distributed by PR Newswire. Excluding a $16 million income tax provision related to the company’s joint-venture with S&P Dow Jones Indices, profit was 70 cents per share, exceeding the average estimate of 69 cents in a Bloomberg survey of analysts.
Average daily volume and the amount of active trades, known as open interest, declined at CME Group in the quarter compared with a year ago, Richard Repetto, an analyst at Sandler O’Neill & Partners LP, said in a note to clients earlier this month. He expected revenue to decline 13.9 percent on the lower volume and because the joint-venture shifts some operating revenue into non-operating income.
Revenue fell 22 percent to $683 million last quarter, from $874 million a year ago, the company said.
(CME Group will hold a conference call for analysts and investors at 8:30 a.m. New York time. To listen, access the company’s Web site at http://www.cmegroup.com)
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