Canaccord Genuity Losses Narrow on Costs, Capital MarketsDoug Alexander
Canaccord Genuity Group Inc., Canada’s largest non-bank brokerage by assets, said losses narrowed in the fiscal second quarter on lower costs and improvements in its capital markets businesses outside Canada.
The net loss for the period ended Sept. 30 was C$80,000 ($76,800), or 3 cents a share, compared with C$14.8 million, or 19 cents, a year earlier, the Toronto-based firm said today in a statement. Revenue fell 1.8 percent to C$183.3 million from the year-earlier period and expenses declined 10 percent to C$184.3 million.
Canaccord benefited from higher capital markets revenue from the U.S., U.K. and Europe, offsetting a decline from its Canadian operations. The brokerage had C$5.5 million in costs from restructuring its sales and trading operations in Canada, the U.K. and Europe, as well as some office closures.
“Challenging markets impacted our Canadian business units, while our U.S. and U.K. businesses posted sequentially strong performances,” Chief Executive Officer Paul Reynolds, 50, said in a conference call after earnings. “We believe the overall industry slowdown is behind us as we’re beginning to see signs of a market resurgence across all our geographies.”
Earnings excluding some items were 3 cents a share, according to the statement, missing the 10-cent average estimate of six analysts surveyed by Bloomberg.
Canaccord rose 2.6 percent to C$6.71 at 3:59 p.m. in Toronto. The shares have gained 0.2 percent this year, trailing the 7.6 percent advance of the benchmark Standard & Poor’s/TSX Composite Index.
The company changed its name from Canaccord Financial Inc. on Oct. 1.