TMX Group reports dividend increase and net income bump of 33%

TMX Group Limited has announced results for the first quarter ended March 31: net income was $63.1 million, a rise of 33% over the $47.3 million reported a year earlier.

Read: TMX Group sells stake in fixed income index business to FTSE

That increase reflected higher revenues across each segment of the business, including $27.3 million related to Trayport Holdings Limited and Trayport Inc. (acquired Dec. 14, 2017), notes TMX in a May 9 release.

However, the increase was partially offset by higher operating expenses, which included $17.5 million related to Trayport.

Read: What investors should know about oil and geopolitical risk

In the quarter, TMX recorded $4.8 million of impairment charges related to TMX Atrium, which was sold on April 30, 2017. There was also a non-cash income tax adjustment of $2.9 million related to the write-off of deferred income tax assets.

TMX saw “record results for the first quarter,” says Lou Eccleston, CEO of TMX Group in the release. He cited “strong performance in capital formation, derivatives, and data and analytics,” in particular.

Excluding the impact of Trayport and divestitures, the company’s organic revenue was up 9% in Q1 2018 compared with Q1 2017, says John McKenzie, CFO of TMX Group, also in the release. “This revenue growth translated into a 27% increase in income from operations over the first quarter of last year, once again demonstrating the leverage in our business model,” he adds.

TMX also increased its quarterly dividend by 16%.

Staff

The staff of Advisor.ca have been covering news for financial advisors since 1998.