- Record revenue of $6.1
billion for full-year 2024, up 10%
CHICAGO, Feb. 12,
2025 /PRNewswire/ -- CME Group Inc. (NASDAQ: CME)
today reported financial results for the fourth quarter and full
year of 2024.
The company reported revenue of $1.5
billion and operating income of $947
million for the fourth quarter of 2024. Net income was
$875 million and diluted earnings per
common share were $2.40. On an
adjusted basis, net income was $919
million and diluted earnings per common share were
$2.52. Financial results presented on
an adjusted basis for the fourth quarter of 2024 and 2023 exclude
certain items, which are detailed in the reconciliation of non-GAAP
results.1
Total revenue for full-year 2024 was $6.1
billion and operating income was $3.9
billion. Net income was $3.5
billion and diluted earnings per common share were
$9.67. On an adjusted basis, net
income was $3.7 billion, and diluted
earnings per common share were $10.26.
"In 2024, CME Group had its best year ever, generating record
annual average daily volume, revenue, adjusted operating income,
adjusted net income and adjusted earnings per share," said
Terry Duffy, CME Group Chairman and
Chief Executive Officer. "With volume growth across every asset
class, we hit new records in interest rates, including U.S.
Treasury and SOFR complexes, as well as in agricultural, foreign
exchange and metals markets. Our Q4 performance also was very
strong, delivering a 6% increase in revenue, adjusted net income
and adjusted earnings per share. As we look ahead amid continuing
economic and geopolitical uncertainty, we will continue to serve
our global clients by providing the products, services and
efficiencies they need to manage risk and pursue opportunities to
meet their business needs."
|
1. A reconciliation
of the non-GAAP financial results mentioned to the respective GAAP
figures can be found within the Reconciliation of GAAP to non-GAAP
Measures chart following the financial statements.
|
Fourth-quarter 2024 average daily volume (ADV) was 25.5 million
contracts, in line with fourth-quarter 2023, including non-U.S. ADV
of 7.6 million contracts, up 5% compared with the same period in
2023.
Clearing and transaction fees revenue for fourth-quarter 2024
totaled $1.2 billion. The total
average rate per contract was $0.701.
Market data revenue totaled $182
million for fourth-quarter 2024.
As of December 31, 2024, the
company had approximately $3.1
billion in cash (including $230
million deposited with Fixed Income Clearing Corporation
(FICC) and included in other current assets) and $3.4 billion of debt. The company declared
dividends during 2024 of $3.8
billion, including the annual variable dividend of
$2.1 billion. The company has
returned over $28 billion to
shareholders in the form of dividends since the implementation of
the variable dividend policy in early 2012. In addition, on
February 6, 2025, the company
declared a first-quarter dividend of $1.25 per share, a 9% increase from the prior
level of $1.15 per share.
CME Group will hold a Q&A conference call to discuss
fourth-quarter 2024 results at 8:30 a.m.
Eastern Time today. A live audio webcast of the
Q&A call will be available on the Investor Relations section of
CME Group's website at investor.cmegroup.com.
An archived recording will be available for up to two months after
the call.
As the world's leading derivatives marketplace, CME Group
(www.cmegroup.com) enables clients to trade futures, options, cash
and OTC markets, optimize portfolios, and analyze data – empowering
market participants worldwide to efficiently manage risk and
capture opportunities. CME Group exchanges offer the widest range
of global benchmark products across all major asset classes based
on interest rates, equity indexes, foreign exchange, energy,
agricultural products and metals. The company offers futures and
options on futures trading through the CME Globex platform, fixed
income trading via BrokerTec and foreign exchange trading on the
EBS platform. In addition, it operates one of the world's leading
central counterparty clearing providers, CME Clearing.
CME Group, the Globe logo, CME, Chicago Mercantile Exchange,
Globex, and, E-mini are trademarks of Chicago Mercantile Exchange
Inc. CBOT and Chicago Board of
Trade are trademarks of Board of Trade of the City of Chicago, Inc. NYMEX, New York
Mercantile Exchange and ClearPort are trademarks of New York
Mercantile Exchange, Inc. COMEX is a trademark of Commodity
Exchange, Inc. BrokerTec and EBS are trademarks of BrokerTec Europe
LTD and EBS Group LTD, respectively. The S&P 500 Index is a
product of S&P Dow Jones Indices LLC ("S&P DJI").
"S&P®", "S&P 500®", "SPY®", "SPX®", US 500 and The 500 are
trademarks of Standard & Poor's Financial Services LLC; Dow
Jones®, DJIA® and Dow Jones Industrial Average are service and/or
trademarks of Dow Jones Trademark Holdings LLC. These trademarks
have been licensed for use by Chicago Mercantile Exchange Inc.
Futures contracts based on the S&P 500 Index are not sponsored,
endorsed, marketed, or promoted by S&P DJI, and S&P DJI
makes no representation regarding the advisability of investing in
such products. All other trademarks are the property of their
respective owners.
Statements in this document that are not historical facts are
forward-looking statements. These statements are not guarantees of
future performance and involve risks, uncertainties and assumptions
that are difficult to predict. Therefore, actual outcomes and
results may differ materially from what is expressed or implied in
any forward-looking statements. We want to caution you not to place
undue reliance on any forward-looking statements. We undertake no
obligation to publicly update any forward-looking statements,
whether as a result of new information, future events or otherwise.
Among the factors that might affect our performance are increasing
competition by foreign and domestic entities, including increased
competition from new entrants into our markets and consolidation of
existing entities; our ability to keep pace with rapid
technological developments, including our ability to complete the
development, implementation and maintenance of the enhanced
functionality required by our customers while maintaining
reliability and ensuring that such technology is not vulnerable to
security risks; our ability to continue introducing innovative and
competitive new products and services on a timely, cost-effective
basis, including through our electronic trading capabilities, and
derive revenues that are commensurate with our efforts and
expectations, our ability to maintain the competitiveness of our
existing products and services; our ability to adjust our fixed
costs and expenses if our revenues decline; our ability to manage
variable costs relating to CME Group's transition to the Google
Cloud and Google Cloud platform and minimize duplicative costs
during the transition between maintaining the on-premise
environment and the Google Cloud environment; our ability to
maintain existing customers at substantially similar trading
levels, develop strategic relationships and attract new customers;
our ability to expand and globally offer our products and services;
changes in regulations, including the impact of any changes in laws
or government policies with respect to our products or services or
our industry, such as any changes to regulations and policies that
require increased financial and operational resources from us or
our customers, as well as the impact of tariffs and tax policy
changes, restrictions on our ability to offer CME Group products
and services in specific geographies or to specific customers or
limitations or changes in underlying/physical product flows across
geographies; the costs associated with protecting our intellectual
property rights and our ability to operate our business without
violating the intellectual property rights of others; decreases in
revenue from our market data as a result of decreased demand or
changes to regulations in various jurisdictions; changes in our
rate per contract due to shifts in the mix of the products traded,
the trading venue and the mix of customers (whether the customer
receives member or non-member fees or participates in one of our
various incentive programs) and the impact of our tiered pricing
structure; the ability of our credit and liquidity risk management
practices to adequately protect us from the credit risks of
clearing members and other counterparties, and to satisfy the
margin and liquidity requirements associated with the BrokerTec
matched principal business; the ability of our compliance and risk
management programs to effectively monitor and manage our risks,
including our ability to prevent errors and misconduct and protect
our infrastructure against security breaches and misappropriation
of our intellectual property assets; our dependence on third-party
providers and exposure to risk through third parties, including
risks related to the performance, reliability and security of
technology used by our third-party providers and third party
providers that our clients and third-parties rely on; our reliance
on third-party distribution partners, including independent
software vendors (ISVs), Futures Commission Merchants (FCMs),
introducing brokers, broker-dealers around the world, regulatory
reporting and data distributors and platform operators, and other
partners, for facilitating trading and for market data information,
and potential impacts from changes in their business models and
priorities; volatility in commodity, equity and fixed income
prices, and price volatility of financial benchmarks and
instruments such as interest rates, equity indices, fixed income
instruments and foreign exchange rates; economic,
social, political and market conditions, including the volatility
of the capital and credit markets and the impact of
economic conditions on the trading activity of our current and
potential customers; our ability to accommodate increases in
contract volume and market data and order transaction traffic
across the entire trade cycle and the ability to implement
enhancements without failure or degradation of
the performance of our trading and clearing systems and
meeting our regulatory reporting obligations; our ability to
execute our growth strategy and maintain our growth effectively;
our ability to manage the risks, control the costs and achieve the
synergies associated with our strategy for acquisitions,
investments and alliances, including those associated with the
performance of our joint ventures with S&P Dow Jones (S&P
Dow Jones Indices LL) in index services, our primary business and
distribution partners' actions and our partnership with Google,
including our ability to manage the successful implementation of
our agreements with Google Cloud and our data center partners;
variances in earnings on cash accounts and collateral that our
clearing house holds for its clients; impact of CME Group
pricing/fee level and structure and incentive changes; impact of
aggregation services and internalization on trade flow and volumes;
any negative financial impacts from changes to the terms of
intellectual property and index rights; our ability to continue to
generate funds and/or manage our indebtedness to allow us to
continue to invest in our business; industry, channel partner and
customer consolidation and/or concentration; decreases in trading
and clearing activity; the imposition of a transaction tax or user
fee on futures and options transactions and/or repeal of the 60/40
tax treatment of such transactions; increases in effective tax
rates, borrowing costs, or changes in tax policy; our ability to
maintain our brand and reputation; and the unfavorable resolution
of material legal proceedings. For a detailed discussion and
additional information concerning these and other factors that
might affect our performance, see our other recent periodic
filings, including our Annual Report on Form 10-K for the year
ended December 31, 2023 as filed with
the Securities and Exchange Commission ("SEC") on February 28, 2024, under the caption "Risk
Factors."
|
CME Group Inc. and
Subsidiaries
|
|
Consolidated Balance
Sheets
|
|
(in
millions)
|
|
|
|
December 31,
2024
|
|
December 31,
2023
|
|
ASSETS
|
|
|
|
|
|
Current
Assets:
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
2,892.4
|
|
$
2,912.0
|
|
Marketable
securities
|
|
113.2
|
|
111.7
|
|
Accounts receivable,
net of allowance
|
|
573.1
|
|
535.6
|
|
Other current assets
(includes $6.3 and $5.2 in restricted cash)
|
|
559.4
|
|
1,138.4
|
|
Performance bonds and
guaranty fund contributions
|
|
98,895.4
|
|
90,192.5
|
|
Total current
assets
|
|
103,033.5
|
|
94,890.2
|
|
Property, net of
accumulated depreciation and amortization
|
|
386.2
|
|
409.5
|
|
Intangible
assets—trading products
|
|
17,175.3
|
|
17,175.3
|
|
Intangible
assets—other, net
|
|
2,821.6
|
|
3,050.2
|
|
Goodwill
|
|
10,486.9
|
|
10,495.3
|
|
Other assets
|
|
3,543.5
|
|
3,685.6
|
|
Total Assets
|
|
$
137,447.0
|
|
$
129,706.1
|
|
LIABILITIES AND
EQUITY
|
|
|
|
|
|
Current
Liabilities:
|
|
|
|
|
|
Accounts
payable
|
|
$
79.9
|
|
$
90.6
|
|
Short-term
debt
|
|
749.8
|
|
—
|
|
Other current
liabilities
|
|
2,588.8
|
|
3,133.8
|
|
Performance bonds and
guaranty fund contributions
|
|
98,895.4
|
|
90,192.5
|
|
Total current
liabilities
|
|
102,313.9
|
|
93,416.9
|
|
Long-term
debt
|
|
2,678.2
|
|
3,425.4
|
|
Deferred income tax
liabilities, net
|
|
5,246.8
|
|
5,327.7
|
|
Other
liabilities
|
|
721.2
|
|
798.2
|
|
Total
Liabilities
|
|
110,960.1
|
|
102,968.2
|
|
CME Group Shareholders'
Equity
|
|
26,486.9
|
|
26,737.9
|
|
Total Liabilities and
Equity
|
|
$
137,447.0
|
|
$
129,706.1
|
|
CME Group Inc. and
Subsidiaries
|
|
Consolidated
Statements of Income
|
|
(dollars in millions,
except per share amounts; shares in thousands)
|
|
|
|
Quarter
Ended
December
31,
|
|
Year
Ended
December
31,
|
|
|
2024
|
|
2023
|
|
2024
|
|
2023
|
|
Revenues
|
|
|
|
|
|
|
|
|
|
Clearing and
transaction fees
|
|
$
1,232.3
|
|
$
1,184.5
|
|
$
4,988.2
|
|
$
4,588.5
|
|
Market data and
information services
|
|
181.6
|
|
167.2
|
|
710.2
|
|
663.7
|
|
Other
|
|
111.4
|
|
87.6
|
|
431.7
|
|
326.7
|
|
Total
Revenues
|
|
1,525.3
|
|
1,439.3
|
|
6,130.1
|
|
5,578.9
|
|
Expenses
|
|
|
|
|
|
|
|
|
|
Compensation and
benefits
|
|
220.8
|
|
212.9
|
|
850.3
|
|
828.6
|
|
Technology
|
|
65.7
|
|
58.5
|
|
255.8
|
|
218.7
|
|
Professional fees and
outside services
|
|
33.9
|
|
36.1
|
|
132.7
|
|
144.4
|
|
Amortization of
purchased intangibles
|
|
55.3
|
|
55.6
|
|
221.7
|
|
226.6
|
|
Depreciation and
amortization
|
|
28.1
|
|
30.7
|
|
115.1
|
|
126.0
|
|
Licensing and other
fee agreements
|
|
84.0
|
|
80.4
|
|
355.4
|
|
322.8
|
|
Other
|
|
90.4
|
|
101.9
|
|
267.6
|
|
276.1
|
|
Total
Expenses
|
|
578.2
|
|
576.1
|
|
2,198.6
|
|
2,143.2
|
|
Operating
Income
|
|
947.1
|
|
863.2
|
|
3,931.5
|
|
3,435.7
|
|
Non-Operating Income
(Expense)
|
|
|
|
|
|
|
|
|
|
Investment
income
|
|
936.5
|
|
1,076.9
|
|
4,079.1
|
|
5,275.3
|
|
Interest and other
borrowing costs
|
|
(40.7)
|
|
(39.7)
|
|
(160.9)
|
|
(159.4)
|
|
Equity in net earnings
(losses) of unconsolidated
subsidiaries
|
|
91.2
|
|
66.8
|
|
350.9
|
|
296.9
|
|
Other non-operating
income (expense)
|
|
(837.5)
|
|
(961.2)
|
|
(3,659.2)
|
|
(4,694.9)
|
|
Total Non-Operating
Income (Expense)
|
|
149.5
|
|
142.8
|
|
609.9
|
|
717.9
|
|
Income before Income
Taxes
|
|
1,096.6
|
|
1,006.0
|
|
4,541.4
|
|
4,153.6
|
|
Income tax
provision
|
|
222.0
|
|
191.4
|
|
1,015.6
|
|
927.4
|
|
Net
Income
|
|
$
874.6
|
|
$
814.6
|
|
$
3,525.8
|
|
$
3,226.2
|
|
Net Income
Attributable to Common Shareholders of
CME Group
|
|
$
863.7
|
|
$
804.3
|
|
$
3,481.5
|
|
$
3,185.6
|
|
|
|
|
|
|
|
|
|
|
Earnings per Share
Attributable to Common Shareholders of CME Group:
|
|
Basic
|
|
$
2.40
|
|
$
2.24
|
|
$
9.69
|
|
$
8.87
|
|
Diluted
|
|
2.40
|
|
2.24
|
|
9.67
|
|
8.86
|
|
Weighted Average
Number of Common Shares:
|
|
|
|
|
|
|
|
|
|
Basic
|
|
359,568
|
|
359,197
|
|
359,389
|
|
359,023
|
|
Diluted
|
|
360,050
|
|
359,693
|
|
359,944
|
|
359,500
|
|
CME Group Inc. and
Subsidiaries
|
|
Reconciliation of
GAAP to non-GAAP Measures
|
|
(dollars in millions,
except per share amounts; shares in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
Quarter
Ended
December
31,
|
|
Year
Ended
December
31,
|
|
|
2024
|
|
2023
|
|
2024
|
|
2023
|
|
Net
Income
|
|
$
874.6
|
|
$
814.6
|
|
$
3,525.8
|
|
$ 3,226.2
|
|
Restructuring and
severance
|
|
1.0
|
|
2.7
|
|
11.3
|
|
17.6
|
|
Amortization of
purchased intangibles(1)
|
|
69.0
|
|
69.0
|
|
275.9
|
|
280.3
|
|
Litigation matters or
settlements
|
|
—
|
|
8.5
|
|
1.2
|
|
10.5
|
|
Strategic
transaction-related costs
|
|
—
|
|
—
|
|
0.8
|
|
(2.2)
|
|
Real estate-related
costs (credits)
|
|
—
|
|
—
|
|
(2.0)
|
|
—
|
|
Foreign exchange
transaction (gains) losses
|
|
0.7
|
|
13.0
|
|
2.9
|
|
12.9
|
|
Unrealized and realized
(gains) losses on investments
|
|
8.1
|
|
4.7
|
|
(3.6)
|
|
(67.1)
|
|
Unrealized and realized
(gains) losses on assets
|
|
0.1
|
|
0.9
|
|
0.9
|
|
1.3
|
|
Income tax effect
related to above
|
|
(15.9)
|
|
(15.5)
|
|
(57.2)
|
|
(44.1)
|
|
Other income tax
items(2)
|
|
(18.7)
|
|
(33.2)
|
|
(16.8)
|
|
(34.0)
|
|
Adjusted Net
Income
|
|
$
918.9
|
|
$
864.7
|
|
$
3,739.2
|
|
$ 3,401.4
|
|
|
|
|
|
|
|
|
|
|
Adjusted Net Income
Attributable to Common
Shareholders of CME Group
|
|
$
907.4
|
|
$
853.8
|
|
$
3,692.2
|
|
$ 3,358.6
|
|
|
|
|
|
|
|
|
|
|
Earnings per Share
Attributable to Common Shareholders of CME Group:
|
|
Basic
|
|
$
2.40
|
|
$
2.24
|
|
$
9.69
|
|
$
8.87
|
|
Diluted
|
|
2.40
|
|
2.24
|
|
9.67
|
|
8.86
|
|
|
|
|
|
|
|
|
|
|
Adjusted Earnings
per Share Attributable to Common Shareholders of CME
Group:
|
|
Basic
|
|
$
2.52
|
|
$
2.38
|
|
$
10.27
|
|
$
9.35
|
|
Diluted
|
|
2.52
|
|
2.37
|
|
10.26
|
|
9.34
|
|
|
|
|
|
|
|
|
|
|
Weighted Average
Number of Shares:
|
|
|
|
|
|
|
|
|
|
Basic common
shares
|
|
359,568
|
|
359,197
|
|
359,389
|
|
359,023
|
|
Diluted common
shares
|
|
360,050
|
|
359,693
|
|
359,944
|
|
359,500
|
|
Preferred
shares(3)
|
|
4,584
|
|
4,584
|
|
4,584
|
|
4,584
|
|
|
1. Includes $11.2
million and $44.5 million of amortization of purchased intangibles
(net of tax) at OSTTRA and $2.5 million and $9.8 million of
amortization of purchased intangibles at S&P Dow Jones Indices
LLC in the fourth quarter and full-year 2024. This is reported in
Equity in net earnings of unconsolidated subsidiaries on the
Consolidated Statements of Income.
|
|
2. Other income tax
items include benefits recognized for the settlement of various tax
audits and for changes in state and local deferred tax
rates.
|
|
3. Preferred shares
have similar rights as common shares without voting
rights.
|
|
CME Group Inc. and
Subsidiaries
|
|
Quarterly Operating
Statistics
|
|
|
|
4Q
2023
|
|
1Q
2024
|
|
2Q
2024
|
|
3Q
2024
|
|
4Q
2024
|
|
Trading
Days
|
|
63
|
|
61
|
|
63
|
|
64
|
|
64
|
|
Quarterly Average
Daily Volume (ADV)(1)
|
|
CME Group ADV (in
thousands)
|
|
|
Product
Line
|
|
4Q
2023
|
|
1Q
2024
|
|
2Q
2024
|
|
3Q
2024
|
|
4Q
2024
|
|
Interest
rates
|
|
13,348
|
|
13,839
|
|
12,894
|
|
14,881
|
|
13,244
|
|
Equity
indexes
|
|
6,922
|
|
6,856
|
|
6,779
|
|
7,407
|
|
6,343
|
|
Foreign
exchange
|
|
1,007
|
|
984
|
|
1,075
|
|
1,089
|
|
969
|
|
Energy
|
|
2,158
|
|
2,412
|
|
2,447
|
|
2,571
|
|
2,519
|
|
Agricultural
commodities
|
|
1,469
|
|
1,596
|
|
1,877
|
|
1,614
|
|
1,755
|
|
Metals
|
|
609
|
|
675
|
|
868
|
|
728
|
|
673
|
|
Total
|
|
25,513
|
|
26,360
|
|
25,941
|
|
28,289
|
|
25,503
|
|
Venue
|
|
|
|
|
|
|
|
|
|
|
|
CME Globex
|
|
23,503
|
|
23,985
|
|
24,143
|
|
26,199
|
|
23,684
|
|
Open outcry
|
|
1,126
|
|
1,333
|
|
825
|
|
1,096
|
|
848
|
|
Privately
negotiated
|
|
885
|
|
1,043
|
|
974
|
|
994
|
|
971
|
|
Total
|
|
25,513
|
|
26,360
|
|
25,941
|
|
28,289
|
|
25,503
|
|
Quarterly Average
Rate Per Contract (RPC)(1)
|
|
CME Group
RPC
|
|
|
Product
Line
|
|
4Q
2023
|
|
1Q
2024
|
|
2Q
2024
|
|
3Q
2024
|
|
4Q
2024
|
|
Interest
rates
|
|
$
0.488
|
|
$
0.486
|
|
$
0.484
|
|
$
0.468
|
|
$
0.485
|
|
Equity
indexes
|
|
0.616
|
|
0.641
|
|
0.628
|
|
0.616
|
|
0.658
|
|
Foreign
exchange
|
|
0.806
|
|
0.787
|
|
0.754
|
|
0.744
|
|
0.778
|
|
Energy
|
|
1.338
|
|
1.334
|
|
1.297
|
|
1.246
|
|
1.237
|
|
Agricultural
commodities
|
|
1.361
|
|
1.356
|
|
1.366
|
|
1.346
|
|
1.359
|
|
Metals
|
|
1.502
|
|
1.556
|
|
1.511
|
|
1.540
|
|
1.530
|
|
Average RPC
|
|
$
0.682
|
|
$
0.695
|
|
$
0.708
|
|
$
0.666
|
|
$
0.701
|
|
|
1. ADV and RPC includes
futures and options on futures only.
|
CME-G
View original
content:https://www.prnewswire.com/news-releases/cme-group-inc-reports-all-time-record-annual-revenue-adjusted-operating-income-adjusted-net-income-and-adjusted-earnings-per-share-for-2024-302374213.html
SOURCE CME Group
