TMX Group post $26.4 million net loss in second quarter after writedown of BOX

TORONTO – TMX Group Ltd. (TSX:X) had a net loss in the second quarter as it recognized the impaired value of some of its assets, primarily its investment in BOX Market LLC, which operates a U.S.-based options exchange.

TMX Group, which owns the Toronto Stock Exchange, TSX Venture Exchange and Montreal Exchange for derivatives, said it had a $26.4 million net loss attributable to its shareholders, or 49 cents per share, in the quarter ended June 30.

That included a $1.31 per share impairment item related to BOX and other assets. Excluding that and other items totalling 19 cents per share, TMX Group’s adjusted profit was $1.01 per share.

In the second quarter of 2013, TMX group had net income of $25.5 million or 47 cents per share and 89 cents per share of adjusted earnings.

The group’s revenue was virtually unchanged at about $182.3 million.

The BOX writedown is a holdover from the reorganization of TMX Group in its current form, with the majority of its equity hold by members of the Maple Group of investors.

TMX says that the value of goodwill and other intanbile assets related to BOX had fallen by $106.2 million after taxes as of the end of the second quarter, compared with the third quarter of 2012 when they were valued. Of the $106.2 million, $42.6 million was attributable to another investor and $63.6 million to shareholders of TMX Group.