February 10, 2011 / 3:12 PM / 7 years ago

UPDATE 2-Canaccord Q3 profit triples, helped by Genuity deal

* Q3 EPS C$0.51 vs C$0.27 yr-ago

* Q3 adj EPS C$0.54 vs est C$0.31

* Q3 rev up 47 percent to C$254.8 mln

* Q3 advisory rev quadruples

(Adds background, advisory business details, share milestone)

Feb 10 (Reuters) - Canadian brokerage Canaccord Financial Inc’s third-quarter profit nearly tripled, as the benefits of its acquisition of rival Genuity Capital Markets started to kick in.

Advisory fees rose four-fold to C$25.2 million, helped by the stong performance of Genuity Capital business, which it acquired for about C$286 million in March last year to expand its merger advisory business. .

“The significant increase in advisory revenue we achieved this quarter reveals the kind of earnings power we believe is possible through our much larger M&A and restructuring team,” Chief Executive Paul Reynolds said in a statement.

Canaccord, which is best known for a strong presence in Canada’s mining sector, said the strength in client activity in the sector continued, marked by transactions like Eastern Platinum’s share offering.

Canaccord Genuity’s revenue rose 53 percent to C$177.8 million, while operating margins improved due to strict cost controls.

Third quarter profit rose to C$42.7 million, or 51 Canadian cents a share, from C$15.1 million, or 27 Canadian cents a share, a year ago. Revenue rose 47 percent to C$254.8 million.

Excluding merger related expenses, profit was 54 Canadian cents a share, beating analysts’ estimates of 31 Canadian cents a share, according to Thomson reuters I/B/E/S.

The company has also been expanding into China, marked by its acquisition of boutique investment bank, the Balloch Group, last month and an agreement with Export-Import Bank of China.

The current market environment threw up many chances to gain new clients and garner market share, the company said.

Shares of the Vancouver-based company, which have risen about 73 percent since the company bought Genuity Capital, closed at C$16.25 on Wednesday on the Toronto Stock Exchange. ($1=.9947 Canadian Dollar) (Reporting by Supantha Mukherjee and Savio D’Souza in Bangalore; Editing by Maju Samuel, Prem Udayabhanu)

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