TMX Group reports lower volumes for Q4 and full year 2019

TMX Group

The Canadian financial service provider, TMX Group Limited, announced yesterday the results of the fourth quarter and the full year 2019.

The total revenue volume for the fourth quarter of 2019 was reported at $202.8 million, a 4% decrease compared to the fourth quarter the previous year. The earnings per share also marked a decrease with 84 cents for diluted earnings per share and 85 cents for the basic, compared to $1.24 the diluted earnings per share and $1.25 for the basic in the previous year. The diluted adjusted earnings per share remained unchanged from last year at &1.31. Cashflow from operating activities is up 21% from the previous year with $83.1 million.

Net income also went down with $47.5 million for the fourth quarter this year, compared to $69.8 the previous year. The decline was largely driven by a non-cash impairment charge of $18.0 million related to the inter-dealer brokerage firm, Shorcan, and lower revenue largely offset by lower operating expenses.

John McKenzie, Interim Chief Executive Officer and Chief Financial Officer of TMX Group, commented:

John McKenzie

John McKenzie

TMX delivered strong results in 2019, drawing on the balanced strength of our complementary set of assets and a consistent, disciplined approach to cost management. The solid performance of Montreal Exchange and CDCC, our core derivatives business, as well as Trayport during the year served to partially offset softer capital markets activity. As we continue further into 2020, TMX’s senior leadership team and all of our employees are focused on building on our organization’s success by serving our clients across the world with excellence, executing against our global growth strategy and creating value for shareholders.

TMX reported the following full year results:

  • TMX reported $806.9 million in total revenue for the full year, slightly down from the previous year when the revenue was $820.7 million.
  • Net income for the full year also went down with $247.6 million, a 13% decrease compared to 2018.
  • The diluted earnings per share for the full year were $4.38 and the basic were $4.42, while in the previous year they were $5.10 and $5.14, respectively.

The company attributes the lower gains in 2019 to decreased gains on the sale of investments compared to the previous year and higher income tax expense.

Read More:

Read Also: