TMX Group net profits double in Q3; revenue up 3% at $170.2 million

TORONTO – An improvement in debt financing costs helped the TMX Group Ltd.(TSX:X) double year-over-year net earnings in the third quarter while posting a big jump in adjusted earnings as well.

The operator of Canada’s major stock exchanges says net income attributable to shareholders was $39.4 million or 73 cents per diluted share in the three-months ended Sept. 30, up from $19.2 million or 38 cents in the comparable prior-year period.

The improvement was primarily due to $16.4 million of credit facility refinancing expenses in the prior-year period as well as lower comparative finance costs in the latest quarter following the refinancing of some $1 billion of debt.

Meanwhile, the owner of the Toronto Stock Exchange, the TSX Venture Exchange and the Montreal Exchange for derivatives among other business, said adjusted earnings jumped 15 per cent to 86 cents per share from 75 cents. The adjusted earnings excluded 13 cents per share of amortization of intangibles related to acquisitions.

Revenue improved three per cent to $170.2 million from $165.3 million.

Chief financial officer Michael Ptasznik the revenue growth, as well as a seven per cent increase in income for operations, reflected income from additional listings and information services.

“The reduction in finance costs of over $6 million . . . compared with the same period last year, also contributed to 15 per cent growth in our adjusted EPS.” he said.