(Reuters) - TMX Group Ltd X.TO, Canada’s biggest stock exchange operator, reported on Wednesday that its second-quarter profit more than doubled, helped by lower operating expenses and continued market volatility.
“Continued market volatility drove significant increases in volumes across our markets, translating into solid revenue growth and even stronger earnings growth,” the company said in a statement.
Global markets have been volatile in part due Brtain’s vote to leave the European Union, a sharp drop in oil prices, and uncertainty surrounding the outcome of the U.S. presidential elections.
The Toronto-based company said net profit attributable to shareholders rose to C$58.3 million, or C$1.07 a share, from C$27.6 million, or 51 Canadian cents a share, a year earlier.
On an adjusted basis the company said it earned C$1.23 a share.
Analysts had on average expected TMX to earn 96 Canadian cents a share on revenue of C$181.5 million, according to Thomson Reuters I/B/E/S.
Revenue rose about 9 percent to C$194.6 million.
However, TMX’s revenue from listings on the Toronto Stock Exchange, TSX Venture Exchange and other issuer services, fell 1.1 percent to C$51.8 million due to volatility which has left investors wary of investing in companies with little or no near-term profitability.
Reporting by Ismail Shakil in Bengaluru and Alastair Sharp in Toronto; Editing by Leslie Adler and Andrew Hay