Cme Group Inc. · NASDAQ:CME
Cme — Q3 2023 Earnings Presentation
8 slides from Cme's earnings presentation, Oct 25, 2023
Slide 1: CME Group 3Q 2023 Earnings Introductory Script
CME Group 3Q 2023 Earnings Introductory Script October 25, 2023 Adam Minick Good morning, and I hope you are all doing well today. We will be discussing CME Group’s third-quarter 2023 financial results. I will start with the safe harbor language, then I'll turn it over to Terry. Statements made on t
Slide 2: Terrence A. Duffy remarks on the quarter
Terrence A. Duffy Thank you all for joining us this morning. We released our executive commentary earlier today, which provides details on the third quarter of 2023. I will make a few brief comments on the quarter and current outlook, and Lynne will summarize our financial results. In addition to Ly
Slide 3: Interest rate business and risk management
risk management. With so much uncertainty in the world we live in, we’re continuing to work closely with our clients to help them navigate uncertainty and manage their risks. This is particularly true in the interest rate markets today. We see divergent market views around inflation, unemployment, m
Slide 4: Eurodollar to SOFR migration and new interest rate products
Completing the successful migration of Eurodollars to SOFR, we continue to list other products to complement our interest rate complex. • Our European Short-Term Rate – or €STR – contracts traded a record 10k per day in September. • Our newly listed treasury bills futures launched on October 2nd and
Slide 5: Commodities volume and outlook
On the commodities side, third-quarter 2023 volume was up 15% in total and included the highest-ever Q3 volume for our agricultural products. Our energy complex also performed well with volume increasing 16% from last year. We believe the current environment for this asset class will continue to bri
Slide 6: Third-quarter revenue, expenses and earnings
During the third quarter, CME generated $1.34 billion in revenue, up 9% compared to a strong third quarter of last year. Clearing and Transaction fees and Market Data revenue each grew 9% versus Q3 2022. Expenses continue to be very carefully managed and on an adjusted basis were $448 million for th
Slide 7: Expense and capex guidance, dividends and cash
fees, to $1.475 billion, a $15 million decrease from our original guidance of $1.49 billion. We are maintaining our guidance of $60 million for our cloud migration expense for a total expense guidance of $1.535 billion excluding licensing fees. We continue to manage our capital expenditures effectiv
Slide 8: Questions and Executive Commentary reference
Please refer to the last page of our Executive Commentary for additional financial highlights and details. We'd like to now open up the call for your questions. Based on the number of analysts covering us, please limit yourself to one question, and then feel free to jump back into the queue. Thank y