TMX first-quarter profit rises 9 percent
(Reuters) - TMX Group Ltd X.TO, which owns and operates the Toronto Stock Exchange, posted a 9 percent rise in quarterly profit late on Monday, helped by lower operating expenses.
Net profit attributable to shareholders rose to C$46.3 million ($35.70 million), or 85 Canadian cents per share, in the first quarter ended March 31, from C$42.6 million, or 78 Canadian cents per share, a year earlier.
"The positive year-over-year impact from lower operating expenses in Q1/16 was somewhat offset by lower revenue, in part reflecting foreign exchange losses compared with significant foreign exchange gains in first quarter last year," Chief Financial Officer Michael Ptasznik said in a statement.
The exchange operator, which is seeking to diversify its business after suffering weak commodity prices alongside its rump of resource-linked listings, said revenue from capital formation fell to C$38.6 million.
Capital formation includes revenue from listings on the Toronto Stock Exchange, TSX Venture Exchange and other issuer services.
On an adjusted basis, the company said it earned C$1 a share, higher than analysts' average estimate of 89 Canadian cents, according to Thomson Reuters I/B/E/S.
Revenue fell 4 percent to C$177.7 million.
TMX had reclassified in February its revenue reporting into market insights, capital formation, derivatives, efficient markets and market solutions, and other categories, from the earlier four sub-categories, to streamline its operating structure and investment priorities around its strategic pillars.
TMX introduced a new mutual funds trading platform in November and is set to launch it in June, as it seeks to boost revenue. Continued...