TMX Group Limited Posts Results for Third Quarter 2020

TMX Group, a Canadian financial services company that operates equities, fixed income, derivatives, and energy markets exchanges, announced results for the Q3 2020.

The revenue reached $207.6 million, which saw an increase of 6% from $196.3 million in Q3 2019. Adjusted net income increased by 13% from $70.9 million in Q3/19 to $80.0 million in Q3/20 largely driven by higher revenue, somewhat offset by higher operating expenses.

Operating expenses in Q3/20 were $107.2 million, up $2.5 million or 2%, from $104.7 million in Q3/19

Diluted earnings per share were $1.23, up 13% from $1.09 in Q3 2019. Adjusted diluted earnings were per share of $1.40, up 12% compared with $1.25 in Q3 2019.  Cash flows from operating activities reached $101.7 million, up 5% from $96.9 million in Q3/19. 

Commenting on performance in the third quarter of 2020, Frank Di Liso, interim Chief Financial Officer of TMX Group, said: “As we work through uncertain market conditions, TMX Group continues to deliver solid revenue and earnings growth highlighting our streamlined operating model. Increased capital markets activity during the quarter, including a surge in issuer financings on Toronto Stock Exchange and TSX Venture Exchange and higher equities trading and clearing volumes, drove a 6% increase in overall revenue compared with the third quarter of 2019.”