Revenue was $92.6 million for the second quarter of 2006, up 35% as compared with $68.6 million for the second quarter of 2005, reflecting increased revenue in the primary revenue streams of listing, trading and market data. Net income increased by 20% over the second quarter of 2005 to $28.5 million, or 42 cents per common share (41 cents on a diluted basis), largely due to higher revenue, partially offset by higher income taxes.

The future tax asset was revalued, and income taxes were increased by $9.6 million, primarily as a result of a decrease in federal corporate tax rates. The adjustment resulted in a reduction in net income of $9.6 million, or 14¢ per common share (on both a basic and diluted basis). This resulted in earnings per share prior to revaluation of the future tax asset of 56¢ (55¢ on a diluted basis).

“We had another excellent quarter in terms of operating performance. Our results continue to reflect growth across the business, in both the equity and energy markets. We set new records for the number of trades on both of our equity exchanges as well as for the number of market data subscriptions,” said CEO Richard Nesbitt.

Commenting specifically on TSX Group’s financial results, Michael Ptasznik, chief financial officer, said “We were very pleased with the strong revenue growth and 43% growth in operating cash flows over Q2/05. Excluding the 14¢ impact from revaluing the future tax asset, we set a new record for EPS performance since becoming a public company.”

In related news, the TSX Group’s board of directors declared a dividend of 33¢ on each common share outstanding, payable on Aug. 31 to shareholders of record at the close of business on
Aug. 17.

The TSX Group also announced on Wednesday the appointments of Raymond Chan and Doug McGregor to the corporation’s board of directors.

Chan is based in Calgary and is president and CEO as well as a director of Baytex Energy Trust. He has held senior executive positions in the Canadian oil and gas industry since 1982, including chief financial officer at Tarragon Oil and Gas Ltd., American Eagle Petroleums Ltd. and Gane Energy Corp.

McGregor, who hails from Toronto, has extensive financial services industry experience as head of Global Investment Banking, RBC Dominion Securities Inc. He is responsible for RBC Capital Markets’ investment banking, equity capital markets, mergers and acquisitions and corporate credit activities.