RPT-UPDATE 2-TMX Group profit tops estimates

Fri May 10, 2013 9:01am EDT
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* Adj EPS C$0.78 vs est C$0.73

* Revenue rises 6 pct from year ago

* Financing and equity trading volumes fall

* Slip in commodity prices hurt resource company activity

By Alastair Sharp

TORONTO, May 10 (Reuters) - TMX Group Ltd, the operator of the Toronto Stock Exchange, reported a better-than-expected profit for the first quarter and said revenue rose 6 percent despite a tough economic backdrop that weighed on trading volumes and issuance.

But the comparison to year-ago results is complicated by the fact that TMX was acquired in September by a consortium of Canadian financial institutions who also rolled in the smaller Alpha exchange and Canadian Depository for Securities Ltd, a trading clearinghouse.

Including these additional assets in the 2012 numbers for TMX, income from operations fell 24 percent to C$60.2 million.

Net income for the quarter was C$37.8 million ($37.7 million), or 70 Canadian cents per share.   Continued...