(Reuters) - TMX Group Ltd, Canada’s biggest stock exchange operator, reported a quarterly profit that topped Wall Street estimates on Wednesday, driven by strong performance of its global solutions, insights and analytics business.
Revenue for Toronto-based TMX rose 22 percent to C$207.6 million ($156.60 million) helped by a spike in market volatility that boosted trading volumes.
Canadian stocks were volatile in the fourth quarter due to increasing tensions between Beijing and Washington over trade tariffs as well as fluctuating global crude prices.
On an adjusted basis, TMX earned C$1.31 per share, beating analysts’ average estimate of C$1.30 per share, according to IBES data from Refinitiv.
Revenue in the global solutions, insights and analytics business rose 53 percent to C$73.8 million.
Net income fell to C$69.8 million, or C$1.24 per share, for the quarter ended Dec. 31, from C$202.3 million, or C$3.63 per share, a year earlier, weighed down by higher net finance costs and operating expenses.
Capital formation revenue slipped 8 percent to C$45.4 million in the fourth quarter of 2018, compared with C$49.3 million a year ago.
Operating expenses before acquisition costs rose 27 percent.
Reporting by Shradha Singh and Philip George in Bengaluru; Editing by Leslie Adler
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