CME Group Inc., a leading and diverse derivatives marketplace headquartered in Chicago, IL, reported its first quarter 2019 financial results, including revenue of $1.2 billion and operating income of $631 million for the first quarter of 2019.
Net income was $497 million and diluted earnings per share were $1.39. On an adjusted basis, net income was $579.2 million and diluted earnings per share were $1.62.
Financial results presented on an adjusted basis for the first quarter of 2019 and 2018 exclude certain items, which are detailed in the reconciliation of non-GAAP results.1
"Despite low levels of volatility in several product areas, we delivered our third-highest quarterly volume in our history during the first quarter, driven by continued product innovation and a growing proportion of our volume from customers outside the U.S.," says CME Group Chairman and Chief Executive Officer Terry Duffy. "In addition, we continue to focus on the NEX integration and have been heavily engaged with clients about our expanded offerings. Lastly, our expense control remained solid during the first quarter of 2019."
First-quarter 2019 average daily volume (ADV) was 18.6 million contracts, which was the third-highest quarter ever, down from a record first-quarter 2018. Non-U.S. ADV also marked the third-highest quarterly ADV ever with 4.7 million contracts, down compared with a record first-quarter 2018.
Clearing and transaction fees revenue for first-quarter 2019 totaled just over $952.6 million and the total average rate per contract was $0.713, up 2% compared with $0.697 in fourth-quarter 2018. This was driven in part by increased activity in higher priced products. Market data revenue totaled $130.1 million for first-quarter 2019.
As of March 31, 2019, the company had $1.1 billion in cash (including $100 million deposited with Fixed Income Clearing Corporation (FICC) and included in other current assets) and $4.3 billion in debt.
The company paid dividends during the first quarter of $892 million, including the annual variable dividend for 2018 of $624 million, which was paid in January 2019.
The company has returned approximately $11.5 billion to shareholders in the form of dividends since the implementation of the variable dividend policy in early 2012.
