August 3, 2016 / 11:42 PM / 2 years ago

Canada's TMX doubles second-quarter profit

(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.

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

“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

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