(Adds detail on results, CEO comment)
TORONTO Aug 7 TMX Group Ltd, the
operator of the Toronto Stock Exchange, took a massive writedown
on its U.S. options investment that pushed it to a net loss in
the second quarter, but its adjusted profit rose 13 percent on
The company said on Thursday that revenue for issuer
services and information services grew, but gains were offset by
slips in trading and clearing revenue for cash and derivative
Technology services also took a hit, mostly due to a TMX
company losing the contract to run SEDAR and other market
databases early this year.
"We continue to focus on new initiatives to further
diversify our business and deliver increased value to our
customers," Tom Kloet, the retiring chief executive, said in the
Kloet had planned to step down in August, but sources told
Reuters earlier on Thursday that his successor has not yet been
selected and he would likely stay longer.
He confirmed that the search committee was still looking.
Along with the Toronto bourse, the company owns the Montreal
derivatives exchange and the small-cap TSX Venture Exchange,
where listings are heavily weighted toward the resource sector.
The second-quarter net loss attributable to shareholders was
C$26.4 million, or 49 Canadian cents per share, compared with a
profit of C$25.5 million, or 47 Canadian cents per share, a year
earlier. Revenue was flat at C$182.3 million.
Excluding a C$128.4 million pre-tax non-cash impairment
charge related to its Box U.S. options business and other costs,
the company earned C$1.01 per share.
Analysts, on average, expected earnings of C$1.03 a share,
according to Thomson Reuters I/B/E/S.
(Reporting by Alastair Sharp; Editing by Ken Wills and Leslie