Toronto Stock Exchange operator TMX's profit tops estimates

(Reuters) - TMX Group Ltd , the operator of the Toronto Stock Exchange (TSX), reported a better-than-expected profit for the first quarter and said revenue rose 6 percent.

Net income was C$37.8 million ($37.7 million), or 70 Canadian cents per share, compared with a loss of C$4.4 million, or C$10.85 per share, a year earlier.

But on an adjusted basis, earnings were 78 Canadian cents per share, beating the average analyst forecast of 73 Canadian cents, according to Thomson Reuters I/B/E/S.

Revenue of C$172.2 million for the quarter included results for TMX Group Ltd for Jan 1. to March 31, 2013, TMX said in a statement on Friday.

However, the company said revenue fell 5 percent in the latest quarter compared with the fourth quarter, due mainly to a drop in fees from share listings.

TMX has come under pressure as equity financings and trading volumes have waned along with the prices of gold, copper and other metals.

Equity trading volumes fell by nearly 20 percent compared with the first quarter of 2012.

The number of follow-on offerings fell nearly 20 percent from the fourth quarter, while the value of those offerings fell by almost 30 percent.

TMX, controlled by a group of 13 Canadian banks and financial institutions, also operates the TSX Venture Exchange, where listings are even more heavily weighted toward mining and oil companies, and the Montreal Exchange, which trades derivatives.

($1 = 1.0024 Canadian dollars)

(Reporting by Bhaswati Mukhopadhyay in Bangalore and Alastair Sharp in Toronto; Editing by Ted Kerr)

Source: http://news.yahoo.com/toronto-stock-exchange-operator-tmx-posts-profit-revenue-102803006.html

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