TMX Group’s Fourth Quarter and Full Year 2018 Revenue Increases by 22%, Tops Analysts Estimate

TMX GroupCanadian financial services company TMX Group, owner of Toronto Stock Exchange has released its fourth quarter financial results. The group continued with its strong third quarter, and in the fourth quarter, the profits have topped the analyst estimate as it recorded strong growth in performance of its global solutions, insights and analytics business.

The revenue in the fourth quarter came in at CA$207.6 million ($156.4 million), which is 22 per cent or CA$36.8 million higher year-on-year. However, higher revenues during the quarter have not translated to higher net income during the quarter, and it fell by almost 65 per cent or $132.5 million to reach $69.8 million.

This is to be noted that the net income in the final quarter of 2017 was benefited from the number of acquisition, which then boosted the results. This included gains in tune to $157.8 million from the sale of NGX and Shorcan Energy. And, it also added gains of FX forwards relating to the Trayport acquisition.

During the quarter, the organic revenue growth that came was 8 per cent, excluding Trayport, which had revenue growth in its core subscriber business of 12 per cent on a yearly comparison.

For the full year Fiscal 2018, the total revenue came in at CA$817.1 million, which is also 22 per cent higher compared to 2017, which had a revenue of CA$668.9 million. The net income during the period also witnessed a fall of 22 per cent year-on-year to CA$286.0 million. 

Commenting on operating performance in the fourth quarter of 2018, John McKenzie, Chief Financial Officer of TMX Group, said:

“We were pleased to report another strong quarter with revenue growth of 22%. Once again, we saw the benefits of having a diversified business where the strength in our trading, clearing and subscription-based businesses more than offset a decrease in additional listing fees revenue.”

Lou Eccleston, the Chief Executive Officer of TMX Group also added:

“TMX’s 2018 results reflect the strength and resiliency in our diversified business model, with year over year growth across all operating segments.”

“In a year highlighted by strong financial performance, TMX continued to make significant progress in the execution of our global growth strategy, increasing our presence in key new markets around the world. Looking ahead, TMX is steadfast in our client-first commitment to serving the world’s premier capital markets, while keenly focused on generating long-term, profitable growth.”

The Board of the company has declared a dividend of $0.62 on each common share outstanding — a rise of 7 per cent from the previous year.