August 10, 2010 / 10:23 PM / in 7 years

UPDATE 1-Davis + Henderson Q2 beats market estimates

* Q2 EPS C$0.47 vs C$0.57 yr ago

* Q2 adjusted EPS C$0.65 vs est C$0.64

* Q2 revenue up 78.4 pct

Aug 10 (Reuters) - Canada's Davis + Henderson Income Fund DHF_u.TO posted a quarterly profit that topped market estimates by a cent, helped by higher sales at its loan registration technology services business.

For the second quarter, the trust reported a net income of C$25 million, or 47 Canadian cents per unit, compared with C$25.2 million, or 57 Canadian cents per unit, a year ago.

The trust, which provides technology to financial services firms in Canada, said its adjusted net income was 65 Canadian cents per unit.

Revenue rose 78.4 percent to C$168.7 million, while expenses for the period more than doubled to C$125.6 million.

Analysts on average were expecting earnings of 64 Canadian cents per unit, before special items, on revenue of C$163.9 million, according to Thomson Reuters I/B/E/S.

The company said it expects the consolidated capital program for 2010 to be about C$27.0-C$30.0 million.

Revenue from its loan registration technology services stood at C$28.3 million, up from C$1.2 million a year ago.

Revenue growth was also driven by a 26 percent increase in mortgage origination service fees for the second quarter on strong activity in the Canadian housing and mortgage markets.

Units of the Toronto-based fund closed at C$16.93 Tuesday on the Toronto Stock Exchange. (Reporting by Koustav Samanta in Bangalore; Editing by Roshni Menon)

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