TMX Group Reports Q1 2015 Metrics, Revenue Climbs YoY

TMX Group Limited has reported its financial results for Q1 2015, which were characterized by lagging earnings, coupled with industry tailwinds, according to a TMX statement.

TMX Group and its subsidiaries operate both cash and derivative markets and clearinghouses across multiple asset classes, including Equities Equities Equities can be characterized as stocks or shares in a company that investors can buy or sell. When you buy a stock, you are in essence buying an equity, becoming a partial owner of shares in a specific company or fund.However, equities do not pay a fixed interest rate, and as such are not considered guaranteed income. As such, equity markets are often associated with risk.When a company issues bonds, it’s taking loans from buyers. When a company offers shares, on the other hand, it’s selling pa Equities can be characterized as stocks or shares in a company that investors can buy or sell. When you buy a stock, you are in essence buying an equity, becoming a partial owner of shares in a specific company or fund.However, equities do not pay a fixed interest rate, and as such are not considered guaranteed income. As such, equity markets are often associated with risk.When a company issues bonds, it’s taking loans from buyers. When a company offers shares, on the other hand, it’s selling pa Read this Term, fixed income, and energy, among others.

In terms of the Q1 2015 earnings, TMX Group Ltd reported revenue of $185.3 million, up 2% YoY from Q1 2014. This was tempered by lagging diluted earnings per share, which were reported at $0.78 in Q1 2015, down -9.3% YoY from $0.86 in Q1 2014.

Moreover, TMX Group yielded an adjusted diluted earnings per share of $0.91 in Q1 2015, falling -13.3% YoY from $1.05 in Q1 2014.

According to Lou Eccleston, Chief Executive Officer of TMX Group, in a recent statement on the Q1 2015 figures and future plans, “Once again, we experienced revenue growth on both a sequential and year over year basis. We benefited from our investments to build diversified revenue streams as we were able to offset those areas of our business that were impacted by reduced commodity prices.

This diversification and investment in new initiatives has resulted in a higher cost base in the short term. We already began to address that in Q1, and optimizing our business mix and cost structure over the longer term is an important element of our strategic review process. With respect to that process, we are making excellent progress. This has included a full-scale analysis of our markets and our organization to understand how best to advance beyond the notion of a group of companies to an integrated organization.”

“A key element in this process is continuing to build on the foundation for how we provide value to clients, deliver total return to shareholders, and differentiate ourselves. In operations, we will evolve our organization to look across all business lines to drive better support for each of those businesses, as well as to maximize the inherent cost advantages of being an integrated organization. We expect to provide a further update on this process in the coming months,” he added.

Back in February, the group made headlines when TMX Datalinx, an information services division of TMX Group, integrated Wall Street Horizon Inc.’s (WSH) data products suite, consequently becoming a global distributor under the terms of its new agreement.