Mr. John McKenzie reports

TMX GROUP LIMITED REPORTS RESULTS FOR SECOND QUARTER OF 2023

TMX Group Ltd. has released results for the second quarter ended June 30, 2023.

• Another record revenue quarter of $306.2-million, up 7 per cent from $285.1-million in Q2 2022;
• Diluted earnings per share of 35 cents, up 6 per cent from 33 cents in Q2 2022;
• Adjusted diluted earnings per share remained unchanged at 38 cents from Q2 2022.

Commenting on results for the first six month of 2023, John McKenzie, chief executive officer of TMX Group, said:

"TMX's strong performance during the first half of the year was marked by consecutive quarters of record overall revenue, and important progress in our enterprise initiatives to advance the evolution of our business, and better serve our stakeholders and growing, global client base. Revenue growth was highlighted by year over year increases in global solutions, insights and analytics, including Trayport and TMX Datalinx, and derivatives trading and clearing, excluding BOX. Partially offsetting these increases, revenue from equities and fixed income trading, as well as capital raising activity, decreased compared to the first six months of 2022, due to challenging market conditions. We look to the future with an adaptive and innovative mindset, committed to building on our track record of success, executing our long-term global growth strategy and fulfilling our purpose to make markets better and empower bold ideas."

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

"TMX continued to deliver solid financial results in the second quarter, with 7-per-cent growth in revenue and 6-per-cent growth in diluted earnings per share year over year. Higher overall revenue was led by double-digit increases in both Trayport and TMX Datalinx, partially offset by the negative impacts of lower capital raising and equities trading activity. Along with positive momentum in our overall business, second quarter results reflect continued growth in the proportion of TMX's revenue derived from recurring sources. Following our recent five-for-one stock split, our board increased the quarterly dividend by 3 per cent, to 18 cents per common share."

Results of operations

Quarter ended June 30, 2023 (Q2 2023), compared with quarter ended June 30, 2022 (Q2 2022)

The information in the attached table reflects the financial statements of TMX Group for Q2 2023 compared with Q2 2022.

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

Net income attributable to equity holders of TMX Group in Q2 2023 was $97.3-million, or 35 cents per common share on a basic and diluted basis, compared with a net income attributable to equity holders of TMX Group of $92.1-million, or 33 cents per common share on a basic and diluted basis for Q2 2022. The increase in net income attributable to equity holders of TMX Group reflects an increase in income from operations of $9.5-million from Q2 2022 to Q2 2023 driven by an increase in revenue of $21.1-million partially offset by an increase in operating expenses of $11.6-million. The increase in revenue from Q2 2022 to Q2 2023 included $1.8-million related to WSH, as well as higher revenue from global solutions, insights and analytics, capital formation, and derivatives trading and clearing (excluding BOX), partially offset by lower listings, equity trading and BOX revenue. The increased expenses included approximately $2.6-million of expenses related to SigmaLogic (control acquired Feb. 16, 2023, and divested April 21, 2023) and WSH (acquired Nov. 9, 2022), of which there was approximately $400,000 related to amortization of acquired intangibles for WSH, as well as approximately $100,000 related to acquisition and related expenses for SigmaLogic. There were also higher expenses reflecting higher headcount and payroll costs, legal fees, and marketing and sponsorship costs. Somewhat offsetting these increases were $5.0-million incurred in Q2 2022 related to AST Canada and Ventriks, of which there was approximately $4.9-million in integration costs related to AST Canada, and $100,000 in acquisition and related expenses for Ventriks.

The increase in earnings per share was also partially attributable to a decrease in the number of weighted average common shares outstanding from Q2 2022 to Q2 2023.

Consolidated financial statements

The company's Q2 2023 unaudited condensed consolidated interim financial statements are prepared in accordance with IFRS (international financial reporting standards) and are reported in Canadian dollars unless otherwise indicated. Financial measures contained in the MD&A and this press release are based on financial statements prepared in accordance with international financial reporting standards (IFRS) and IFRS Interpretations Committee (IFRIC) interpretations, as issued by the International Accounting Standards Board (IASB) for the preparation of interim financial statements, in compliance with IAS 34, Interim Financial Reporting, unless otherwise specified. All amounts are in Canadian dollars unless otherwise indicated.

Access to materials

TMX Group has filed its Q2 2023 unaudited condensed consolidated interim financial statements and MD&A with Canadian securities regulators. This press release should be read together with the company's Q2 2023 unaudited condensed consolidated interim financial statements and MD&A (management's discussion and analysis). These documents may be accessed through SEDAR+, or on the TMX Group website.

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 Toronto Stock Exchange, TSX Venture Exchange, 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 Q2 2023.

Time:  8 a.m. to 9 a.m. ET on Friday, July 28, 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 585517.

We seek Safe Harbor.