May 10, 2016 / 3:43 AM / 2 years ago

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.

A TMX Group sign, the company that runs the Toronto Stock Exchange (TSX), is seen in Toronto, June 23, 2014. REUTERS/Mark Blinch

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.

Reporting by Manish Parashar and Rama Venkat Raman in Bengaluru; Editing by Sandra Maler and Sunil Nair

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