08/05/2011 06:21 EDT | Updated 10/05/2011 05:12 EDT

TMX Group Profit Drops In Second Quarter

CP File

TORONTO - TMX Group Inc. (TSX:X) says it recorded net income of $54.7 million in the second quarter of 2011 and per share earnings of 73 cents as the stock exchange operator generated higher revenues.

The earnings, reported early Friday, were down from net income of $58.4 million, or 70 cents per share, in the same period last year.

TMX Group , in the middle of a hostile takeover bid for the company by a group of Canadian banks and other financial companies, also reported quarterly revenue of $169.3 million.

That's a gain of eight per cent from $156.1 million a year earlier on growth in listings and other new business.

Analyst estimates had been for earnings of 90 cents per share on revenues of $170 million.

TMX Group owns the Toronto Stock Exchange , the junior TSX Venture Exchange, and Canada's energy trading and derivatives markets.

CEO Thomas Kloet says on a combined basis, new listings on the Toronto Stock Exchange and TSX Venture Exchange were up 33 per cent.

"There have been many significant accomplishments on the operational and financial front to date this year," Kloet said in a release before stock markets opened Friday.

"Among the successes in this past quarter was renewed momentum in our listings business. On a combined basis, new listings on Toronto Stock Exchange and TSX Venture Exchange were up 33 per cent and the value of new equity financings on TSX Venture Exchange increased 84 per cent. We are also proud that Toronto Stock Exchange reached over 200 exchange traded products listed in June.

"We continue to see strong growth in derivatives as volumes on the Montreal Exchange reached another new quarterly record with 16.3 million contracts traded."

TMX Group is in the midst of an intense takeover battle that recently saw one of it suitors, the London Stock Exchange Group, drop out of the competition after the deal failed to gain enough shareholder support.

The remaining bidder, Maple Group Acquisition Corp., a group of financial institutions and pension funds said Wednesday it will give investors more time to decide whether they want to tender their shares under the $3.8-billion offer.

It will give TMX Group shareholders until Sept. 30 to tender their shares, extending the deadline initially set for next Monday.

Maple said that during the extension period it will continue trying to receive the required approvals for the acquisition from securities regulators and the federal Competition Bureau.

Maple has said previously that it expected to receive approvals in the fall.

The offer is to acquire between 70 and 80 per cent of the shares of TMX Group — part of an integrated acquisition transaction to acquire 100 per cent of TMX shares.

The TMX has said it will continue its expansion plan, whether it comes to an agreement with Maple, or moves forward on its own.

Also on Wednesday, TMX Group announced the purchase of Atrium Network, a provider of capital markets data in Europe and North America.