CBOT Holdings, Inc said revenue in the second quarter of 2005 rose to a new high, increasing 18% above the 2004 level, with record trading volume and a higher average rate per contract contributing to these results. Net income in the second quarter climbed 10% to $18.2 million, compared with $16.5 million in the second quarter of 2004.
Second quarter revenue was $120.6 million, up from $102.1 million in the second quarter of 2004. Exchange and clearing fee revenue in the second quarter grew 28% to $92.2 million, compared with $72.2 million in the second quarter of 2004. Second quarter operating income was $33.7 million, rising 18% from $28.5 million in the same period during the prior year. Operating income and net income in the second quarter include legal expenses of $4.0 million, which represents the final payment made to plaintiffs’ lawyers in an agreement made to settle the lawsuit brought by certain members of the CBOT relating to the proposed allocation of equity in the restructuring of the CBOT.
CBOT Holdings President and CEO Bernard W. Dan said, “Every major CBOT product category — agricultural, financial, equity index and metals — contributed to the CBOT’s volume growth this past quarter. Second quarter earnings also benefited from an increase in the average rate per contract, which rose 10 percent above last year’s level. Our success is largely attributable to a consistent and disciplined strategic focus on meeting global market users’ need for effective risk management — via the introduction of innovative new products, such as the May 2005 launch of the South American Soybean futures, increased access to the CBOT, and deep, liquid markets.”
CBOT trading volume in the second quarter of 2005 reached a new high. Quarterly volume rose 17% over the prior year to 184.9 million contracts. Average daily volume in the second quarter of 2005 increased to 2.9 million contracts, up 15% from 2.5 million contracts in the second quarter of 2004.