Mr. John McKenzie reports

TMX GROUP LIMITED REPORTS RESULTS FOR FIRST QUARTER OF 2023

TMX Group Ltd. has released its results for the first quarter ended March 31, 2023.

Commenting on Q1 results, John McKenzie, chief executive officer of TMX Group, said:

"TMX delivered positive results in the first quarter, with year-over-year growth in revenue and sustained momentum in priority initiatives designed to accelerate our long-term, global growth strategy. Increased revenue in the quarter again reflects the value of TMX's deep portfolio of assets, with double-digit growth in our expanding global solutions, insights and analytics business, including TMX Datalinx and Trayport, as well as Derivatives Trading and Clearing, excluding BOX. These gains were partially offset by decreased revenue from equities and fixed income trading and clearing, and capital raising activity, due to challenging market conditions. Driven by our purpose to make markets better and empower bold ideas, TMX is firmly committed to building on our track record of innovation and leadership in serving capital markets into the future."

Commenting on TMX Group's performance in the first quarter of 2023, David Arnold, chief financial officer of TMX Group, said:

"Our results for the first quarter reflect the continued resiliency of our diverse business model as we work through a challenging macro backdrop. Revenue excluding Wall Street Horizon, SigmaLogic and BOX increased by 6 per cent compared with the first quarter of last year, as we continue to invest in growth to meet our long-term financial objectives."

Results of operations

Quarter ended March 31, 2023 (Q1 2023), compared with quarter ended March 31, 2022 (Q1 2022)

The information in the attached table reflects the financial statements of TMX Group for Q1 2023 compared with Q1 2022.

Net income attributable to equity holders of TMX Group and earnings per share

Net income attributable to equity holders of TMX Group in Q1 2023 was $89.0-million, or $1.60 per common share on a basic and $1.59 per common share on a diluted basis, compared with $267.4-million, or $4.78 per common share on a basic and $4.75 on a diluted basis, for Q1 2022. The decrease in net income attributable to equity holders of TMX Group is largely due to a non-cash gain of $177.9-million being recognized in Q1 2022 resulting from the revaluation of the company's interest in BOX upon acquisition of voting control, and a decrease in income from operations of $2.4-million (includes 100-per-cent income from operations of BOX of which 52.1 per cent relates to non-controlling interests). The decrease in income from operations from Q1 2022 to Q1 2023 was driven by an increase in operating expenses of $14.1-million, which included $3.3-million of expenses related to SigmaLogic (acquired control Feb. 16, 2023), WSH (acquired Nov. 9, 2022), and acquisition and related expenses for equity-accounted investments. There were also higher expenses related to higher headcount and payroll costs, revenue related expenses, increased IT operating costs, and employee performance incentive plan costs. This was somewhat offset by an increase in revenue of $11.7-million in Q1 2023 compared with Q1 2022, of which $1.7-million related to WSH, and $200,000 of revenue for SigmaLogic.

The decrease in earnings per share was partially offset by a decrease in the number of weighted average common shares outstanding from Q1 2022 to Q1 2023.

Revenue was $299.1-million in Q1 2023 up $11.7-million or 4 per cent compared with $287.4-million in Q1 2022 attributable to an increase in revenue from global solutions, insights and analytics, partially offset by decreases in equities and fixed income trading and clearing, and capital formation revenue. The increase from Q1 2022 to Q1 2023 included $1.7-million of revenue for WSH (acquired Nov. 9, 2022), and $200,000 of revenue for SigmaLogic (acquired on Feb. 16, 2023), offset by a $5.3-million decrease in BOX revenue. Excluding revenue from WSH, SigmaLogic and BOX, revenue was up 6 per cent in Q1 2023 compared with Q1 2022.

Operating expenses in Q1 2023 were $159.4-million, up $14.1-million or 10 per cent, from $145.3-million in Q1 2022. The increase from Q1 2022 to Q1 2023 reflected approximately $3.3-million of expenses related to SigmaLogic (control acquired Feb. 16, 2023), WSH (acquired Nov. 9, 2022), of which there was approximately $700,000 related to amortization of acquired intangibles for WSH, as well as $400,000 related to acquisition and related expenses for SigmaLogic, WSH and VettaFi. There were also higher expenses related to higher headcount and payroll costs, revenue related expenses, increased IT operating costs, employee performance incentive plan costs, and increased expenses for travel and entertainment, and marketing costs.

Partially offsetting these increases was a decline in legal fees, long-term employee performance incentive plan costs and severance. The company also incurred $1.2-million in integration costs related to AST Canada in Q1 2022. Excluding expenses from SigmaLogic, WSH, AST Canada and VettaFi, operating expenses increased 8 per cent in Q1 2023 compared with Q1 2022.

About TMX Group Ltd.

TMX Group operates global markets and builds digital communities and analytic solutions that facilitate the financing, growth and success of businesses, traders and investors. TMX Group's key operations include TSX, TSX-V, TSX Alpha Exchange, the Canadian Depository for Securities, Montreal Exchange, Canadian Derivatives Clearing Corp. and Trayport, which provide listing markets, trading markets, clearing facilities, depository services, technology solutions, data products and other services to the global financial community. TMX Group is headquartered in Toronto and operates offices across North America (Montreal, Calgary, Vancouver and New York) as well as in key international markets, including London, Singapore and Vienna.

Teleconference/audio webcast

TMX Group will host a teleconference/audio webcast to discuss the financial results for Q1 2023.

Time:  8 a.m. to 9 a.m. ET on Tuesday, May 2, 2023

To teleconference participants:  Please call the following number at least 15 minutes prior to the start of the event.

The audio webcast of the conference call will also be available on TMX Group's website under investor relations.

Teleconference number:  416-764-8659 or 1-888-664-6392

Audio replay:  416-764-8677 or 1-888-390-0541

The pass code for the replay is 834400.

We seek Safe Harbor.