Canada’s leading exchange firm, TMX Group Ltd., reported strong results for its second quarter, beating analyst expectations.
The TMX reported record quarterly revenue of $210.3 million for Q2, and net income of $77.2 million. Revenue was up 6% from the prior quarter, and earnings rose by 26%.
The increase in revenues was driven by rising revenues in its global solutions, insights and analytics business, and revenue from CDS rose too. This was partly offset by a decrease in capital formation revenue.
“Revenue was up sequentially in all major parts of our business with the exception of equities trading reflecting lower volatility,” said John McKenzie, CFO of TMX Group.
“The strength in our revenue and our continued focus on managing costs resulted in record income from operations in the second quarter,” he added.
Net income was down compared with the same quarter last year, but its year-over-year results were boosted by gains from the sale of its interest in TMX FTSE, and a one-time decline in income tax expenses.
On a per share basis, the TMX earned $1.38 per common share in Q2, and $1.37 on a diluted basis. Adjusted EPS was $1.46, and $1.45 on a diluted basis.
“TMX’s performance in the second quarter serves to highlight the strength and resiliency of our business model as we delivered record results amidst less than ideal capital markets conditions,” said Lou Eccleston, CEO of TMX Group.
“Our efforts to diversify revenue streams have enabled TMX to achieve strong operating results for three consecutive quarters despite ongoing challenges in our operating environment, including reduced financing activity in our capital formation business,” he added.
“As we continue into the second half of 2019, TMX’s focus remains fixed on executing our global strategy to deliver client-centric solutions across the markets we serve and on delivering profitable growth to our shareholders,” Eccleston said.