TMX Group Inc. on Wednesday reported an 31% increase in profit for the first quarter ended March 31.

Net income for the financial markets operator was $42.9 million, or 58¢ a share, compared with net income of $32.7 million, or 49¢ a share, a year ago.

In the first quarter of 2008, net income was reduced by $15.2 million, or 23¢ due to a payment to ISE Ventures, LLC with respect to the termination a derivatives joint venture.

Revenue was $135.8 million for the first quarter 2009, up $23.4 million, or 21%, compared with $112.4 million in the year-earlier period.

TMX says the increase reflects $27.1 million in revenue related to the business operations of Montreal Exchange and Boston Options Exchange and increased energy and fixed income trading and market data revenue, somewhat offset by lower issuer services and cash markets equity trading revenue.

“Despite the impact of difficult market conditions in the first quarter, the benefits of diversifying TMX Group are evident in our results,” says Michael Ptasznik, CFO of TMX Group.

“While issuer services and equity trading revenue declined, some key areas of our business continued to experience revenue growth over the first quarter of last year, including our energy segment, as well as our market data and fixed income trading operations.”

TMX Group Inc. also declared a dividend of 38¢ per common share outstanding, payable on May 29 to shareholders of record at the close of business on
May 15.

IE