The CME Group Inc. International Derivatives Market. (NASDAQ:CME) today announced financial results for the fourth quarter and full year 2023.
The company reported revenue of $1.4 billion, up from $1.2 billion last year, and operating income of $863 million for the fourth quarter of 2023.
Net income was $815 million and diluted earnings per common share were $2.24.
On an adjusted basis, net income was $865 million and diluted earnings per common share were $2.37.
Total revenue for the full year 2023 was $5.6 billion and operating income was $3.4 billion. Net income was $3.2 billion and diluted earnings per common share were $8.86. On an adjusted basis, net income was $3.4 billion and diluted earnings per common share were $9.34.
Terry Duffy, Chairman and CEO of CME Group, commented:
“As global investors turned to our large, liquid markets to manage risk across asset classes, CME Group’s average daily volume rose to a record 24.4 million contracts in 2023, generating record revenue and adjusted earnings. In Q4, we delivered our tenth consecutive quarter of double-digit adjusted earnings growth. This strong performance was driven, in large part, by a 36% increase in interest rates in the fourth quarter, including a 46% increase in government ADV futures. Going forward, we continue to focus on delivering new products and increasing capital efficiency, including the enhanced FICC cross-margin program launched last month.”
Average daily volume (ADV) for the fourth quarter of 2023 was 25.5 million contracts, up 17% compared to the fourth quarter of 2022, including 7.2 million ADV contracts outside the US, up 28% compared to the same period in 2022.
Clearing and trading fee revenues for the fourth quarter of 2023 totaled nearly $1.2 billion. The overall average price per contract was $0.682. Market data revenue was $167 million for Q4 2023.
As of December 31, 2023, the company had approximately $3.1 billion in cash (including $175 million deposited with the Fixed Income Clearing Corporation (FICC) and included in other current assets) and $3.4 billion in debt. The company declared dividends in 2023 of $3.5 billion, including an annual variable dividend of $1.9 billion.
The company has returned over $24.3 billion to shareholders in the form of dividends since implementing the variable dividend policy in early 2012. Additionally, on February 8, 2024, the company announced a first quarter dividend of $1.15 per share, 5% increase from the previous level of $1.10 per share.
