TSX Group Inc. yesterday reported higher third-quarter profit as revenue was boosted by increased trading activity.
For the three months ended Sept. 30, net income was $28.7 million, or 42¢ a diluted share, up from $15.6 million, or 23¢ a share, in the year-before period.
The operator of the Toronto Stock Exchange and the TSX Venture Exchange said last year’s results were restated lower after TSX implemented new accounting standards for revenue recognition of listing fees. The standards were applied retroactively to Jan. 1, 2004.
“The change in accounting does not change the underlying reality of our overall financial performance,” TSX chief executive Richard Nesbitt said on a conference call.
Stripping out the impact of the accounting change, net income was $36.8 million, or 54¢ per share, up from $20 million, or 30¢ a share.
Quarterly revenue for TSX rose 27% to $75.3 million, driven mainly by trading income that jumped 49% to $33.6 million.
Expenses fell by 15%.
The total value of securities traded on the senior and junior equity exchanges during the quarter was $282 billion, up from $174.2 billion in the year-before period.