TMX Group Sees Surge in Revenues, Profitability in Q2

TMX’s revenues surged over 9% in Q2 2016, climbing to $194.6 million in one of the group's best quarters recently.

TMX Group Limited, a comprehensive operator of equities, fixed income, derivatives, and energy markets exchanges, has disclosed its Q2 financial results, which were highlighted by an across-the-board growth in key metrics.

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TMX’s revenues led the charge in Q2 2016, climbing to $194.6 million, orchestrating a climb of 8.9% YoY from $178.7 million in Q2 2015. Several factors justified this growth, the most significant being a mitigation of operating expenses at the group. In particular, TMX saw its operating expenses drop to $106.9 million in Q2 2016, down -5.0% from $112.1 million in Q2 2015.

Furthermore, income from operations was also on the uptick, signaling a figure of $85.7 million in Q2 2016, 36.0% YoY from $63.2 million over the same period in 2015. Cash flows were also a strong area of growth in Q2, with TMX reporting $97.8 million, up from $83.8 million in Q2 2015, or 17.0% YoY.

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Rising Profitability

TMX also saw rising earnings per share, which reflected a strong period for the group. The group disclosed its quarterly diluted earnings per share at $1.07 in Q2 2016, which bested a figure of just $0.51 per share in Q2 2015, surging by a margin of 109.8% YoY.

According to Lou Eccleston, CEO of TMX Group, in a recent statement on the quarterly performance: “Our record performance this past quarter reflects increased market demand for our products and services, as well as the significant benefits from the progress we have made in advancing our strategy, particularly in continuing to re-align our cost structure.”

“We are also making excellent strides in developing new products to diversify our revenue and position the company for future success. Execution of our plans will continue throughout 2016, as we introduce new solutions and explore more ways to draw on the intrinsic strength of the organization while pushing forward with the integration of systems and organizational structures designed to deliver competitive advantages for our clients and improve profitability for shareholders,” he noted.

TMX recently made headlines last month after it appointed Jay Rajarathinam as its newest Chief Information Officer (CIO). The appointment was the second at TMX in a one-month span, following the addition of John McKenzie as Chief Financial Officer (CFO).

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