TMX Group Ltd. posted a profit of $15.3-million in the third quarter, compared with a loss in the year-earlier period, its first report since its restructuring in the Maple Group acquisition.
TMX Group Ltd., previously Maple Group Acquisition Corp., is the name of the entity – including banks, pension funds and insurers – that recently completed the acquisition of TXM Group Inc., the Canadian Depository for Securities Ltd. and the Alpha electronic trading systems.
The results, for the operator of the Toronto Stock Exchange, are for August and September of 2012 only.
TMX Group Ltd. plans to eliminate 100 positions over the next 12 months as part of its integration of the two recently acquired businesses.
The stock exchange operator’s president and chief executive officer, Thomas Kloet, revealed the job cuts in a quarterly conference call with analysts.
TMX Group had about 1,300 employees overall at the end of September, including about 400 that recently joined the Toronto-based company.
The $15.3-million in profit, or 53 cents per share, compared with a loss of $13.3-million or $109.79-million per share in Q3 of 2011.
The $109.79-million per share loss reflects an acquisition charge.
Revenue for the two months of operating activity in 2012 was $113.4-million, down from $167.8-million in the year-earlier quarter.
On an adjusted basis, Q3 profit came in at 67 cents per share, compared with 7 cents per share in the year-earlier period.
TMX Group Inc. was acquired in September of 2012, and the CDS clearing house and Alpha systems were acquired in August.
Other subsidiaries include the TSX Venture Exchange, the Montreal futures and derivatives exchange and the Boston Options Exchange.
TMX Group Ltd. also declared on Friday a dividend of 40 cents on each common share outstanding, payable Dec. 7, 2012.
“Similar to other exchange operators around the world, continued global economic uncertainty and a decline in domestic and international capital market activity impacted TMX Group’s financial results in the third quarter of 2012,” Mr. Kloet said in a news release.
“As we enter the final weeks of 2012, we remain focused on the execution of our business strategy and will enter 2013 with a strong and more globally competitive business focused on future growth.”
TMX Group chief financial officer Michael Ptasznik said plans to integrate the various business units are in place.
“We remain committed to achieving our goal of approximately $20-million in run-rate cost synergies in the first quarter of 2014.”
With a file from Canadian Press