TMX Group, the Canada-based integrated, multi-asset class exchange group and holding company of Toronto Stock Exchange, has announced results for the Q2 and H1 ended June 30, 2009. Net income dropped 4.7% to $43 million from a year earlier. Cash flows from operating activities in Q2/09 of $50.3 million, down 18% versus Q2/08. Revenue is $137.6 million, up 6% over Q2/08. Diluted EPS of 63 cents for Q2/09, down 3% over Q2/08.
Even though trading at Toronto Stock Exchange and TSX Venture Exchange increased by 13% during April-June quarter, TMX’s decision to reduce transaction fees and increse rebates for market makers to stay in the competition has eaten into its profits considerably.
Thomas Kloet, CEO of TMX Group, said: “Performance in the second quarter of 2009 was solid in a challenging business environment. We took a 19.9% stake in London Stock Exchange’s derivatives business, EDX London, acquired NetThruPut’s crude oil trading operation and advanced MX’s integration into TMX Group. In the second half, we will leverage these investments, enhance our offering and further sharpen our focus on delivering business value to our customers.”
Michael Ptasznik, CFO, said: “We are pleased with the sequential improvement in our quarterly results, reflecting increased trading revenue from TSX Venture Exchange, higher revenue from fixed income and energy trading compared with the first quarter of 2009.”
