February 9, 2011 / 7:27 AM / 7 years ago

UPDATE 2-TMX Group posts Q4 profit on higher trading revenue

* Q4 EPS C$0.66 vs loss C$0.36 a year earlier

* Analysts had expected EPS of C$0.73 (Adds revenue figures, details)

TORONTO, Feb 9 (Reuters) - Exchange operator TMX Group (X.TO), which is in advanced talks to be acquired by the London Stock Exchange (LSE.L), swung to a fourth-quarter profit from a year-ago loss thanks to higher revenue from trading, issuer and information services.

Net income at TMX, operator of the Toronto Stock Exchange, was C$49.1 million ($49.4 million), or 66 Canadian cents a share, compared with a loss of C$26.8 million, or 36 Canadian cents a share, a year earlier.

Adjusted earnings were 68 Canadian cents a share, down from 82 Canadian cents for the same period last year.

Revenue fell 1 percent to C$151.5 million. Last year the company received a one-time license fee of C$13.5 million from the LSE.

Analysts, on average, had expected earnings of 73 Canadian cents a share on revenue of C$154.3 million, according to Thomson Reuters I/B/E/S.

The Toronto-based exchange operator said higher expenses tied to incentives relating to its share price appreciation offset some gains.

It also said it set a record for volume traded on the TSX and its Venture Exchange, with more than 172 billion securities traded.

Late on Tuesday, the LSE and the TMX said they were in advanced talks to combine forces and form a trans-Atlantic exchange operator with a market capitalization of more than $6.8 billion. [ID:nN08106811]

The deal would create a major center for trading mining shares if it overcomes potential political opposition in Canada.

TMX said the companies are looking at an exchange ratio close to the current market cap of the two stock exchanges. At that rate, LSE shareholders would own about 56 percent of a combined company, while TMX would own the rest, according to Thomson Reuters data. (Reporting by Solarina Ho in Toronto and Sakthi Prasad in Bangalore; editing by John Wallace) ($1=.9947 Canadian Dollar)

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below