Chicago Mercantile Exchange Holdings Inc. has reported record revenues and profits, with a 54% increase in net income for first-quarter of 2005 compared with first-quarter 2004.
Net revenues climbed 29% to $214 million, compared with $166 million during the same period a year ago. Income before income taxes was $118 million, compared with $77 million, and net income was $71 million, versus $46 million. Earnings per diluted share rose 51 percent to $2.04 from $1.35. The company declared a second-quarter dividend of 46 cents per share, payable on June 27, 2005 to shareholders of record on June 10, 2005.
Average daily volume was 3.9 million contracts for first-quarter 2005, a 39% increase from first-quarter 2004. Trading on the CME Globex electronic trading platform grew 95% from 1.3 million contracts per day in first-quarter 2004 to 2.6 million per day in first-quarter 2005. Electronic volume represented 66% of total CME volume in the quarter. In March, electronic trading averaged a record 2.8 million contracts per day, up 78% from March 2004.
“CME delivered the highest quarterly volume and revenue ever in each of our financial product lines, in the quarter with the fewest trading days,” said CME Chairman Terry Duffy. “We are off to a great start in the second quarter, averaging 5 million contracts per day, up from 3.9 million contracts per day in the first quarter. We are continuing to benefit from secular trends, including increased investor sophistication and more active investment strategies that are driving a shift toward exchange-traded derivatives to manage risk. Furthermore, with the rise in economic uncertainty in April – due to factors such as fluctuating interest rates, energy costs and weakened consumer confidence – more market users are turning to CME.”