LSE, TMX Group results top forecasts
By Luke Jeffs and Solarina Ho
LONDON/TORONTO (Reuters) - The London Stock Exchange and Canada's TMX Group reported forecast-beating results on Friday as they applied for regulatory approval of their $3 billion deal to join forces.
Shares of the exchanges, both pressured by competition from alternative trading upstarts, rose after the results.
First-quarter profit at TMX, the operator of the Toronto Stock Exchange, rose 13 percent to C$64.3 million ($66.8 million), while revenue climbed 17 percent to C$174.7 million, on record volume and robust equity financing.
"I, along with maybe one or two others were already on the high end of Street estimates and they exceeded our estimates by a country mile," said National Bank Financial analyst Shubha Kahn.
The LSE exchange reported 2010 profit up 22 percent at 341 million pounds ($555.5 million), well above a forecast of 314 million in a poll of 14 analysts.
Revenue increased 7 percent to 675 million pounds, above analyst expectations of 651.1 million. The total dividend for the period was 26.8 pence, above a forecast 25.9p.
"We have seen strong growth in our fixed-income businesses, exchange-traded funds and derivatives. We are also starting to see positive impact from technology sales," Chief Executive Xavier Rolet told Reuters Insider TV in an interview.
The exchanges formally applied on Friday to have the deal approved by authorities in Ontario, Quebec, Alberta and British Columbia. The provincial regulators, along with the federal government, have a say in the deal first announced February 9. Continued...