Feb 13 TMX Group Ltd, 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 C$1.18 in the
fourth quarter ended Dec. 31, above the analysts' average
estimate of C$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 C$13 million ($10 million) in net
cost savings on a run rate basis by the end of 2016, exceeding
its target of C$8 million to C$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 percent to C$189.4 million in the quarter,
beating analysts' estimate of C$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 percent in
the quarter from a year earlier.
Net profit attributable to TMX shareholders was C$52.6
million, or 95 Canadian cents per share, in the fourth quarter,
compared with a loss of C$159 million, or C$2.92 per share, a
($1 = 1.3065 Canadian dollars)
(Reporting by Alastair Sharp in Toronto and Vishal Sridhar in
Bengaluru; Editing by Amrutha Gayathri)