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UPDATE 1-Canada's TMX profit beats as lower expenses offset revenue fall

Published 2018-02-12, 10:47 p/m
© Reuters.  UPDATE 1-Canada's TMX profit beats as lower expenses offset revenue fall
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Feb 12 (Reuters) - Toronto Stock Exchange operator TMX Group Ltd X.TO reported on Monday a higher-than-expected fourth-quarter profit as lower operating expenses before acquisition costs helped offset a fall in revenue.

Total revenue fell 2 percent to C$170.9 million ($135.9 million) in the quarter ended Dec. 31 due to a 9 percent decline in revenue from the global solutions, insights and analytics segment.

Derivatives trading revenue also fell 3 percent to C$27.6 million in the period from a year earlier.

TMX is broadly seeking to expand its business outside of North America and create higher value services out of the vast amount of data it generates.

Net income attributable to shareholders nearly quadrupled to C$202.3 million, or C$3.63 per share, in the fourth quarter . net income included gains from TMX's sale of Natural Gas Exchange Inc (NGX) and Shorcan Energy Brokers Inc to Intercontinental Exchange Inc ICE.N in a deal in October.

The company completed its acquisition of Trayport, a London-based energy trading software firm, from Intercontinental Exchange for C$931 million during the quarter.

Operating expenses before acquisition costs fell 9 percent to C$87.1 million in the period.

Excluding items, TMX posted a profit of C$1.22 per share, beating analysts' average estimate of C$1.18 per share, according to Thomson Reuters I/B/E/S.

($1 = 1.2579 Canadian dollars)

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