TSX Group Inc. is reporting a larger profit for the fourth quarter ended Dec. 31. The operator of the Toronto Stock Exchange said stronger revenues and a one-time tax-related benefit lead to the stronger profit.

The increase prompted the company to raise its dividend.

“Reflecting the market, our revenues for the fourth quarter were at record levels,” Barbara Stymiest, TSX’s chief executive, said in a conference call with analysts and media.

Net income for the quarter $26.9 million, or 79¢ per share, , up from $13.0 million, or 38¢, a year ago.

Stripping out a gain from the revaluation of a future tax asset, TSX Group would have earned $18.3 million, or 54¢ a share in the quarter.


The firm also reiterated its long-term goal of yearly earnings-per-share growth in the 10% to 12%.

Revenue rose 29% to $67.3 million as a rebound in stock markets led to stronger performances from most of the firm’s business units.

Listing fees rose 54% to $29.7 million, while trading-related revenues climbed 27% to C$21.2 million.

The total value of securities traded on both the senior and junior exchanges increased 25% to $188.4 billion.

Cash, investments and marketable securities were $117.6 million at the end of 2003, down from $235 million at the end of the previous year. This was largely due to the $5 per share special dividend the firm paid out last quarter.

In a separate release, TSX announced it would buy NGX Canada Inc., a Calgary, based natural gas and electricity exchange, for about $38 million, from European market operator OHMEX AB. The transaction is expected to close in the first quarter of 2004, pending regulatory approval.

TSX Group has been pushing to expand its presence in other markets and to grab a larger share of trading of cross-listed shares. It announced two weeks ago that it would allow U.S.-dollar denominated trading of certain stocks.

For the full year, its first as a publicly traded company, TSX earned $76.4 million, or $2.25 a share, up from $53.8 million, or $1.59 a share.

Shares of TSX Group rose 19¢ to $44.79 on Tuesday. Its financial report was released after markets closed.