Toronto Stock Exchange parent's profit rises 23 percent
By Alastair Sharp
TORONTO (Reuters) - TMX Group Ltd X.TO, the operator of the Toronto Stock Exchange, reported a 23 percent rise in first-quarter profit on Friday as a budding recovery in trading activity picked up speed.
The company said higher trading and clearing volumes were complemented by cost savings and lower financing costs after restructuring its long-term debt last year.
"The reduction in operating expenses would be a positive," said RBC Capital Markets analyst Paul Holden, adding it was not clear how much of the savings were one-time or could be factored into future earnings estimates.
The company said revenue was boosted as total capital raised increased from the prior quarter and year-ago period, although capital raised from initial public offerings slipped, bucking a global trend.
On a conference call with analysts, executives said mining sector financings since the end of the quarter were flat, but the outlook for technology listings was strong.
"The technology pipeline, as you might guess just from looking around with what's happening around the world, is very positive," said TMX Group Chief Executive Officer Thomas Kloet.
Along with the Toronto bourse, the company also owns the Montreal derivatives exchange and the small-cap TSX Venture Exchange, where listings are heavily weighted toward the resource sector.
The company said its energy market notched strong volume growth due to higher natural gas prices and volatility that reflected extreme winter weather. Continued...