CME Q3 FY12/23 Earnings Review

CME Q3 FY12/23 Earnings Review
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Key Points 

  • Unexceptional revenue figures in Q3
  • Interest rate products remain strong
  • Free cash flows improved
  • Still waiting for a better price entry
  • We rate the stock at Hold.

by Yimin Xu

Revenue growth is seasonal

CME's revenue has followed a pattern over the past 3 years. It starts the year strong, but steadily decreases each quarter until the new year begins.

This Q3, revenue was down 2% on the quarter but up 9% year-on-year. CME's clearing and transaction fees grew by 9%. Market data services also increased by 9%.