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TMX Group Ltd. cut operating expenses in the first quarter ended March 31 (Q1 2019), but that wasn’t enough to offset lower revenues, the Toronto-based exchange operator announced Thursday.

Net income in Q1 2019 was $61.2 million, or $1.10 per common share, compared with a net income of $63.1 million, or $1.14 per common share, for Q1 2018. The income drop reflected lower revenue from capital formation and equities and fixed income trading, TMX said in a release.

Lower operating expenses of $107.3 million compared with $111.5 million Q1 2018 partially offset the drop in revenue.

There was also lower income tax expense in Q1 2019 compared to Q1 2018, which included $1.2 million of additional income tax expense on gain on sale of NGX and Shorcan Energy.

“Our Q1/19 results reflect the impact of challenging market conditions while highlighting the strength and resiliency of TMX’s streamlined operating model,” said John McKenzie, CFO of TMX, in a statement.

“While slower capital markets activity impacted the performance of our equities listings and trading businesses, we saw strong performances in our core Trayport and derivatives trading and clearing businesses. We also benefited from a disciplined approach to cost management, as operating expenses declined by 4% compared with Q1 2018.”

Derivatives trading and clearing revenue rose to $32.6 million in Q1 2019 from $31.3 million a year ago.

Separately, TMX announced that its wholly owned subsidiary Trayport Ltd. has entered into an agreement to acquire Vienna-based VisoTech, a leading provider of European short-term energy trading solutions. The company expects the transaction to close in the second quarter of 2019. TMX did not disclose the financial terms of the deal.