Q2 2024 TMX Group Ltd Earnings Call Transcript
Key Points
- TMX Group Ltd (TMXXF) reported a strong revenue increase of 18% in the first half of 2024 compared to the same period in 2023.
- The acquisition of TMX VettaFi contributed significantly to revenue growth, adding $69.9 million in the first half of 2024.
- TMX Trayport showed robust performance with a 19% revenue growth, driven by a 24% increase in total licenses.
- Derivatives trading and clearing revenue, excluding BOX, increased by 8% year over year, with notable growth in interest rate products.
- The company is making significant progress in expanding its listing franchise beyond Canada, with over 230 international companies now listed on TSX or TSX Venture Exchange.
- Capital formation revenue decreased by 4% in the first half of 2024 due to lower revenue from additional listing fees on the TSX Venture Exchange.
- Operating expenses increased by 27% in Q2 2024 compared to the same period last year, largely due to the inclusion of TMX VettaFi and integration costs.
- The company faces challenges in the macroeconomic environment, impacting capital market conditions over the last 2.5 years.
- There was a modest shortfall in capital formation revenue, partially offsetting the overall revenue gains.
- The transition from BAX to CORRA in derivatives trading resulted in a gap between volume growth and revenue growth.
Good morning, ladies and gentlemen, and welcome to the TMX Group Limited Q2 2024 financial results conference call. (Operator Instructions) This call is being recorded on Thursday, August 1, 2024.
I would now like to turn the conference over to Amin Mousavian, Vice President, Investor Relations and Treasury at TMX Group. Please go ahead.
Thank you, and good morning, everyone. Live from New York. It's Thursday morning. We're hosting today's call from our TMX VettaFi office in New York. Thanks for joining us to discuss the 2024 second-quarter results for TMX Group. We announced our results for another strong quarter late yesterday, and copies of our press release and MD&A are available on tmx.com under Investor Relations. This morning, we have with us John McKenzie, our Chief Executive Officer; and David Arnold, our Chief Financial Officer. Following the opening remarks, we will have a question-and-answer session.
Before we begin, let's cover
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