TORONTO (Reuters) - Canadian exchange operator TMX Group Inc (X.TO) said on Wednesday its second-quarter profit rose 26 percent as the May 1 acquisition of the Montreal Exchange derivatives operation helped to boost its bottom line.
TMX Group, which also runs the Toronto Stock Exchange, said net income was C$49.2 million ($48.2 million), or 65 Canadian cents a share, in the three months ended June 30. That was up from profit of C$39.1 million, or 57 Canadian cents a share, in the same 2007 period.
Analysts had expected to see earnings of 64 Canadian cents a share before items, according to Reuters Estimates.
The second quarter included two months of results from Montreal Exchange, which contributed C$3.9 million of total profit during this period.
In the cash equities and fixed income business, profit rose 15 percent to C$43.8 million.
The company, which was called TSX Group until shareholders approved a name change in June, also runs the junior TSX Venture Exchange as well as various platforms to trade bonds, energy contracts and carbon emissions.
“We continued to see strong growth in both the market data and energy parts of our business and our results reflect a positive revenue contribution from (Montreal Exchange),” Chief Financial Officer Michael Ptasznik said in a press release.
TMX Group said revenue rose 22 percent to C$130.1 million in the quarter, while operating expenses climbed 27 percent to C$54.3 million.
“In the second half of 2008, we look forward to beginning to realize the benefits of the integration and to providing new solutions for customers,” newly installed TMX Group President and Chief Executive Thomas Kloet said.
Kloet took the helm at TMX earlier this month.
Shares of TMX Group were up 4.3 percent at C$37.33 on the Toronto Stock Exchange on Wednesday afternoon.
Reporting by Lynne Olver; Editing by Peter Galloway