May 10, 2016 / 3:42 AM / a year ago

UPDATE 1-TMX first-quarter profit rises 9 percent

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May 9 (Reuters) - TMX Group Ltd, which owns and operates the Toronto Stock Exchange, posted a 9 percent rise in quarterly profit late on Monday, helped by lower operating expenses.

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. ($1 = 1.2970 Canadian dollars) (Reporting by Manish Parashar and Rama Venkat Raman in Bengaluru; Editing by Sandra Maler and Sunil Nair)

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