Expanding Global Footprint & Higher Volumes Lead To A Profitable Q1 For CME
CME Group (NASDAQ:CME) announced its first quarter fiscal 2016 earnings on Thursday, April 28, reporting a 11% year on year (y-o-y) rise in revenues. The growth in the quarter was mainly driven by higher transaction revenues (+12% y-o-y), helped by the company’s strategy of increasing global participation. However, CME’s non-transaction segments saw lukewarm growth of approximately 3% y-o-y, led by market data revenues. The company said that it expects some headwinds in its market data revenues going forward, due to screen declines and changes in the pricing structure.
CME is expanding its footprint globally, focusing on markets such as China, India, Taiwan, and Australia. As a result of this strategy, the exchange operator reached approximately 200,000 contracts per day in China, Taiwan, and Hong Kong combined in Q1’16, as opposed to 125,000 contracts per day in Q1’15.
Equities (+ 28% -o-y) and metals (+23% y-o-y) made the largest gains in terms of average daily volumes (ADV) in the quarter. Energy followed close behind (+ 18% y-o-y), with Asian energy business up 82% in terms of ADVs.
Have more questions about CME? See the links below:
- CME Group Sees Growth In All Asset Classes In February
- What’s CME’s Revenue And EBITDA Breakdown In Terms Of Operating Segments?
- How Has CME’s Revenue Composition Changed Over The Past 5 Years?
- How Has CME’s Revenue & EBITDA Changed In The Last Five Years?
- How Is CME Expected To Grow In The Next Five Years?
- What Is CME’s Fundamental Value Based On Expected 2016 Results?
- What Drove CME’s Revenue And EBITDA Growth In 2015?
- How Important Is Interest Rate Contracts’ Trading Revenue For CME?
- What Percentage Of CME’s Value Comes From Energy Contracts’ Trading Revenues?
- How Much Upside Can An Increase In Rate Per Commodity Contract Drive For CME’s Stock?
- What Can Drive A 15% Downside To CME’s Stock In The Next 2 Years?
- CME Earnings Preview: Robust Trade Volumes To Drive Revenues In Q1
View Interactive Institutional Research (Powered by Trefis):
Global Large Cap | U.S. Mid & Small Cap | European Large & Mid Cap
More Trefis Research