Lower expenses boost TMX profit

Toronto Stock Exchange operator TMX Group Inc (X-T) on Wednesday posted a 22-percent rise in third-quarter profit, helped by lower expenses, and raised its dividend by 5 percent.

TMX, which also runs the junior TSX Venture Exchange and the Montreal Exchange derivatives market, said net income rose to $50.8 million, or 68 cents a share, in the third quarter.

That compares with a profit of $41.7 million, or 56 cents a share, in the year ago.

Analysts, on average, had expected TMX to earn 64 cents a share, according to Thomson Reuters I/B/E/S.

Revenue rose 8 percent to $141.6 million, compared with analysts' average forecast of $141.7 million.

Operating expenses in the quarter fell 2 percent to $68.2 million.

The company also raised its dividend to 40 cents per share from 38 cents.

TMX Group shares have gained 13 percent of their value in the last six months.