TMX Group profit falls on weaker equity trading

TMX Group Inc. (X-T), operator of the Toronto Stock Exchange, reported a 10-percent fall in quarterly profit as revenue from its listing business halved and economic uncertainty weighed on its equity trading business.

TMX, which also owns the TSX Venture Exchange, is awaiting the fate of a $3.8-billion proposed takeover by the Maple Group consortium of Canadian financial services firms.

The Maple Group unveiled its offer for the TMX Group last year and recently extended the bid deadline to May 31. TMX said if needed, it will support the friendly bid until July 31.

The Competition Bureau said it was studying the Ontario Securities Commission's draft terms and conditions for approving the bid for TMX.

Net income attributable to TMX Group shareholders fell to $56.8 million, or 76 cents per share, from $63.1 million, or 84 cents per share, a year ago.

The latest first-quarter profit was hurt by $0.5 million in costs related to the Maple Group acquisition, on a pretax basis, TMX said in a statement.

Initial listing fees fell to $3.9 million. The profit also declined due to higher compensation and benefits expenses.

Revenue fell 7 percent to $162.3 million.

Analysts on average expected a profit of 88 cents per share, on revenue of $172.5 million, according to Thomson Reuters I/B/E/S.

TMX, however, said higher volumes at its Boston Options Exchange and Montreal Exchange boosted derivatives revenue.

Operating costs rose 8 percent to $83.1 million.