TMX Group Ltd (X.TO), which owns and operates the Toronto Stock Exchange, reported better-than-expected quarterly results as the exchange operator reaped benefits from cost cuts.

TMX's adjusted diluted earnings per share was $1.18 in the fourth quarter ended Dec. 31, above the analysts' average estimate of $1.12, according to Thomson Reuters I/B/E/S.

The dominant Canadian exchange operator has been transforming itself into a leaner business focused on core operations, amid intensifying competition.

The company reported about $13 million in net cost savings on a run rate basis by the end of 2016, exceeding its target of $8 million to $10 million per year, Chief Financial Officer John McKenzie said in a statement on Monday.

TMX said in September it was cutting 95 full-time positions and about 20 consultant and contractor jobs, with the reductions to be completed by the end of the first quarter of 2017.

The company said last month it had sold risk management business Razor Risk for an undisclosed sum, after ceding control of its BOX options exchange late last year.

Revenue rose 7 per cent to $189.4 million in the quarter, beating analysts' estimate of $184.6 million, helped by its capital formation unit, which includes the TSX, the TSX Venture for junior issuers, and its private market.

Revenue from the capital formation unit rose 7.8 per cent in the quarter from a year earlier.

Net profit attributable to TMX shareholders was $52.6 million, or 95 Canadian cents per share, in the fourth quarter, compared with a loss of $159 million, or $2.92 per share, a year earlier.