TMX Group (TMX), an exchange operator and owner of the Toronto Stock Exchange, released its third-quarter results for 2018 this Friday.

Revenue for the quarter increased by CAD 40.8 million ($30.93 million), from CAD 152 million ($115.25 million) to CAD 192.8 million ($146.18 million), when compared to the same quarter last year.

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That increase was equivalent to 27 percent year-on-year growth.

Concurrent with this was a similar increase in TMX’s operational expenses.

For the third quarter last year, the exchange reported total operating expenses of CAD 84.4 million ($63.99 million).

This year that figure grew by CAD 21.9 million ($16.60 million) to CAD 106.3 million ($80.60 million) – a 26 percent increase.

TMX Group – Profit

As a result of the uptick in operational spending, and as our mathematically minded readers can probably already see, pre-tax profit for the third quarter of this year was CAD 86.5 million ($65.58 million).

That was a 28 percent increase on last year’s third quarter, at the end of which TMX reported a total pre-tax profit of CAD 67.6 million ($51.23 million).

Sadly for TMX and its shareholders, these results did not translate into a similar level of increase in profit for the quarter.

The results released by TMX on Friday indicate that it made CAD 57.5 million ($43.58 million) for the third quarter of this year.

For the same period in 2017, the firm made CAD 51.9 million ($39.33 million) in profit.

Yes, that still meant this year saw an 11 percent increase in profit, but it was less than half, in percentage terms, of growth in revenue.

TMX explained this disparity in their report by noting that revenue growth was offset as a result of higher costs related to employee incentive plans and expenses incurred by the acquisition of energy trading platform Trayport in December of last year.