CME's Profit Rises on Higher Trading Volumes -- Update

By Lisa Beilfuss 

CME Group Inc., the world's largest futures-market operator, said its first-quarter profit rose 24%, help by higher trading volumes.

The company's top- and bottom-line results beat Wall Street expectations.

"We delivered strong revenue growth in the first quarter driven primarily by interest rate, energy and foreign exchange products, with double-digit average daily volume growth coming from Europe and North America," said Chairman and Terry Duffy.

CME said earlier this month that its volume averaged 15 million contracts a day during the first quarter, up 10% from a year earlier and marking the second-highest quarter in the company's history. Energy volume jumped 26% and interest rate volume rose 13%, offsetting a 4.1% decline in equity trading volume.

Earlier this year, CME said it would shut most of its futures trading pits in Chicago and New York as the prominence of electronic trading has shrunk liquidity on traditional floor markets.

Profit rose to $330.4 million, or 98 cents a share, from $266.8 million, or 79 cents, a year earlier.

Revenue increased 8.4% to $842.7 million. Clearing and transaction fees, which account for about 85% of the company's top line, climbed 8.6% to $708.2 million.

Analyst were looking for 95 cents in per-share profit on $838.1 million in revenue.

The company's stronger-than-expected results contrast with fellow exchange operator Nasdaq OMX Group Inc., which last week said its profit dropped in the first quarter, hurt by restructuring-related expenses and changes in foreign-exchange rates.

CME shares, up 27% over the past 12 months, were inactive in premarket trading.

Write to Lisa Beilfuss at [e-mail]

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