TORONTO (Reuters) - TMX Group Inc , operator of the Toronto Stock Exchange, reported a weaker quarterly profit on Wednesday, hurt in part by weaker cash equity trading revenue and higher expenses.
TMX, which also operates the small-cap TSX Venture Exchange and the Montreal Exchange derivatives market, said net income fell to C$41.7 million ($39 million), or 56 Canadian cents a share, in the third quarter.
That compares with profit of C$50.9 million, or 66 Canadian cents a share, in the year-before period.
Analysts, on average, had expected earnings per share of 61 Canadian cents, according to Thomson Reuters I/B/E/S.
TMX revenue fell 6 percent to C$130.2 million.
Cash equity trading revenue on the Toronto exchange fell as a new pricing program lowered average revenue per trade. The company said that net income was also pressured by higher expenses related to new technology initiatives and by lower investment income.
This was offset partly by higher revenue from energy trading, cash markets equity trading revenue on the TSX Venture Exchange and fixed income trading, TMX said.
Operating expenses in the quarter rose 10 percent to C$68.4 million, boosted by expenses related to the company's May 2008 acquisition of the Montreal Exchange, as well as technology investments.
Shares of TMX were down 82 Canadian cents, or 2.4 percent, at C$32.94 on the Toronto Stock Exchange at midday on Wednesday.
($1=$1.07 Canadian)
(Reporting by Jennifer Kwan; editing by Peter Galloway)
