Canada's TMX Group Ltd. (X.TO) Friday reported a profit for its first quarter, compared to a loss last year. The integrated, multi-asset class exchange group's revenues grew 6 percent, with contributions from CDS and Alpha. The board also declared a dividend of C$0.40 per share.
TMX Group had completed acquisition of TMX Group Inc. on September 14, 2012 and the acquisitions of The Canadian Depository for Securities Ltd., or CDS, Alpha Trading Systems Inc. and Alpha Trading Systems Limited Partnership on August 1, 2012, collectively, the Maple transaction.
The company said its condensed consolidated interim financial statements include the operating results of TMX Group Inc., CDS and Alpha. Comparative financial statements for, and as at, the quarter ended March 31, 2012 include TMX Group Ltd., only.
In the first quarter, net income attributable to TMX Group shareholders was C$37.8 million, compared with a loss of C$4.4 million in the previous year. Earnings per share were C$0.70, versus a loss of C$10.85 per share last year.
Adjusted earnings totaled C$0.78 per share for the recent quarter, which excluded C$0.03 per share of Maple transaction and integration costs, C$0.16 per share of amortization of intangible assets related to acquisitions, and C$0.11 per share of reduction in income tax expense.
Income from operations declined to C$60.2 million from C$79.2 million in the prior- year quarter.
Thomas Kloet, chief executive officer of the company stated, "Significant progress was made in the first quarter of 2013 to advance our strategic business priorities, expand our product portfolio and broaden our customer base. This activity took place against a backdrop of sustained market uncertainty, which resulted in lower new listings, financings and equity trading volumes."
Revenue for the quarter grew 6 percent to C$172.2 million including C$22.2 million of revenue from CDS and C$4.8 million of revenue from Alpha. This compares with last year's revenue of C$162.3 million.
The board has declared a dividend of C$0.40 per share, to shareholders of record on May 24, payable on June 7.
X.TO settled at C$52.94 on Thursday, down 1.21 percent from the previous close.
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