Toronto-based TMX Group Ltd. is hiking its dividend by 5¢ to 50¢ per share, the stock exchange operator announced on Tuesday as it released its first quarter (Q1) results.
“Our strong operating performance gave us confidence to support an 11% increase the quarterly dividend, following our commitment to target a payout ratio consistent with that of our domestic and international peers,” said John McKenzie, CFO of TMX Group, in a statement.
For Q1 2017, TMX Group saw revenues increase by 5% from the same quarter a year ago to $186.1 million. Over the same period, cash flow from operating activities is up by 20%, adjusted earnings per share (EPS) is up 11%, and diluted EPS is unchanged at 85¢.
“With a 5% increase in revenue, which is 7% revenue growth when excluding the impacts from selling Razor Risk and de-consolidating BOX, we delivered another solid quarter driven by strength in the capital markets portion of our business,” McKenzie added.
“This revenue growth coupled with a 2% decline in operating expenses before strategic re-alignment expenses, contributed to 15% growth in income from operations before strategic re-alignment expenses and 11% growth in adjusted EPS, once again reflecting the leverage in our operating model,” he said.
Lou Eccleston, CEO of TMX Group, said in a statement: “In our operational results and the progress made to date in our growth initiatives, TMX continues to reap the benefits of an investment strategy focused on profitable growth and a diligent approach to cost management. This increase aligns our dividend payout ratio with that of our domestic and international peers. The organization remains focused in our pursuit of sustained profitable growth and delivering shareholder value into the future.”