October 30, 2019 / 11:28 AM / 7 months ago

UPDATE 1-CME Group profit beats on strong trading volumes

(Adds analyst estimates, background, revenue details)

Oct 30 (Reuters) - Exchange operator CME Group's third-quarter profit topped Wall Street estimates on Wednesday, as increased market volatility lifted trading volumes and boosted transaction fees.

A protracted U.S.-China trade spat and fears of an economic downturn kept volatility high in the third quarter, benefiting exchange operators like CME who make a bulk of their money from clearing and settling trades.

Clearing and transaction fees, CME's biggest revenue stream, rose 38.3% to $1.04 billion, lifted by a 30% jump in average daily volumes (ADV) to 20.2 million contracts.

Revenue from the market data and information services business, which helps investors to make trading decisions and minimize risk, rose 17.3% to $129.8 million.

Net income attributable to the company surged to $636.3 million, or $1.78 per share, in the quarter ended Sept. 30, from $411.8 million, or $1.21 per share, a year earlier.

Stripping out one-time items, the Chicago-based company earned a profit of $1.90 per share, while analysts had expected $1.76 per share, according to IBES data from Refinitiv.

Total revenue soared 41.3% to $1.28 billion. (Reporting by Bharath Manjesh in Bengaluru; Editing by Subhranshu Sahu)

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