TMX Group Reports Weak Q4 Earnings as Revenues Plunge

TMX incurred a forgettable quarter as its revenues, net income, and earnings all tanked across the board as the group

TMX Group, operator of the Toronto Stock Exchange and four sovereign marketplaces, has disclosed its Q4 financial metrics, ending December 31 2015, having incurred lower revenues and figures over a yearly basis, according to a TMX statement.

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During Q4 2015, TMX’s revenue came in at $177.1 million, which constitutes a decline of -3.1% YoY from $182.7 million in Q4 2014. This figure was bogged down by the group’s income from operations, which tumbled to $52.3 million in Q4 2015 from $67.0 million in Q4 2014, or 21.9% YoY. Operating expenses during this interval also rose to $116.6 million, up less than 1.0% YoY to $115.7 million in Q4 2014, squeezing profits.

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In addition, TMX also reported a diluted loss per share of $2.92 during Q4 2015, a massive loss compared to a gain of $0.76 per share in Q4 2014. On an adjusted basis, the group also witnessed a basic earnings per share of $0.87 in Q4 2015, falling -6.5% YoY from $0.93 in Q4 2014.

Finally, TMX suffered from a net income loss during Q4 2015, driven in large part by non-cash impairment charges related to Capital Formation (Listings), Efficient Markets (Equities trading), Derivatives (BOX), and other assets. In numerical terms, this corresponded to a figure of -$159.0 million in Q4 2015, relative to $41.1 million in Q4 2014.

According to Lou Eccleston, Chief Executive Officer of TMX Group, in a recent statement on the group’s financials: “2015 was both a transformative and challenging year for TMX. We successfully executed a number of significant strategic and operational changes aimed at realigning the organization around priority areas for investment and transforming TMX into a client-focused and competitive technology driven solutions provider.”

“We also worked to realize efficiencies in our operations. Economic factors, particularly the prolonged slump in commodity values, continued to weigh heavily on the performance of the Canadian economy and on key elements of our market ecosystem,” he added.

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