TMX Group Fourth-Quarter Profit Beats Estimates on Acquisitions
TMX Group Ltd., the owner of the Toronto Stock Exchange, said fourth-quarter profit was C$32.8 million ($32.9 million), beating analysts’ estimates, on higher revenue from acquisitions.
TMX Group had net income of 61 cents a share, the Toronto- based company said today in a statement. Revenue rose 12 percent to C$181.1 million. The numbers from a year ago aren’t strictly comparable because a new company was formed after the sale of the exchange owner to a group of banks and pension funds last year.
The company benefited from an increase in revenue from its trading, clearing and depository business, after adding contributions from the Canadian Depository for Securities Ltd. clearinghouse and Alpha Group. The businesses were acquired as part of TMX’s C$3.73 billion takeover in September.
TMX said it had profit of 95 cents a share excluding some items, beating the 73 cents a share average estimate of eight analysts surveyed by Bloomberg.
Trading on TMX’s equity markets, including the Toronto Stock Exchange, TSX Venture and Alpha, fell 21 percent in the quarter from a year earlier, according to company statistics.
Financings on the Toronto Stock Exchange and TSX Venture jumped 32 percent to C$14.8 billion, as companies including retailer Hudson’s Bay Co. and Vancouver miner Ivanplats Ltd. completed initial public offerings in the period.
(TMX Group will hold a conference call at 8 a.m. to discuss quarterly results at +1-888-231-8191 or +1-647-427-7450 or on www.tmx.com under investor relations.)
To contact the reporter on this story: Doug Alexander in Toronto at email@example.com