Source: The Canadian Press

Canaccord Financial Inc. reported a big drop in its profits in the latest quarter, mainly because of acquisition-related costs from the Vancouver company’s takeover of Genuity Capital Markets.

Canaccord (TSX:CF) reported Thursday it earned $4.9 million or six cents a diluted share for the fiscal first quarter ended June 30. The compared with profits of 9.1 million or 16 cents a share for the same year-earlier period.

Year-over-year revenues rose 10.5% to $151.9 million from $137.5 million.

The company said the quarter’s results include $12.4 million of acquisition-related expenses related to the Genuity acquisition.

Excluding those costs, net profit would have been $13.9 million or 18 cents a share.

Paul Reynolds, president and CEO, said that “despite the challenging market environment that existed through much of the quarter, our Q1/11 results reflect the early signs of success we’ve achieved through our acquisition of Genuity Capital Markets.”

“It’s indicative of the momentum we’re building across our business as we leverage the expertise and relationships of our expanded capital markets team to provide even more value for our clients.”