NZX Limited Analysis

Overview

NZX operates New Zealand's equity, debt, funds, derivatives and energy markets. To support the growth of these markets, NZX provides trading, clearing, settlement, depository and data services for its customers. NZX also owns Smartshares, New Zealand's only issuer of listed Exchange Traded Funds, and KiwiSaver provider SuperLife. More for information, please visit: www.nzx.com

Performance

The following information was extracted from NZX Limited's Half Year Results, released on 23 August 2024:

NZX showing ongoing strength through economic & market cycles

• Group operating earnings1 of $22.4 million, up 12% year on year
• Underlying net profit after tax (NPAT) of $8.0 million, a year-on-year increase of 10.9% after excluding an accounting adjustment of $7.3 million relating to the fair value of the QuayStreet Asset Management earnout provision
• Reported NPAT was $15.3 million, up 119.0%
• Interim dividend of 3.0 cents per share, fully imputed
• FY2024 operating earnings is tracking towards the upper end of the 2024 full-year guidance range of $40 million to $44.5 million.

NZX Limited today announced operating earnings (EBITDA) of $22.4 million for the six months ended 30 June 2024, up 12% on H1 2023, demonstrating positive momentum in delivering to its growth strategy. Excluding acquisition, integration and restructure costs, Group operating earnings (EBITDA) for the same period were $22.9 million – up 11.5%.

“In an ongoing challenging environment for global markets, NZX’s earning result shows the benefit of having interrelated businesses and a diverse range of offerings available for companies to access capital,” NZX Chief Executive Mark Peterson says.

Operating revenue increased 7.3% to $57.9 million and operating expenses, excluding acquisition integration and restructure costs, increased 4.7% to $35.0 million.

NZX has a strong focus on cost management, as well as extracting efficiencies in its funds management business. The increased operating expenses were largely driven by changes in Smartshares’ cost base arising from the full period impact of the QuayStreet Asset Management (QuayStreet) acquisition and Superlife Superannuation Master Trust integration activities.

NZX produced an underlying net profit after tax (NPAT) of $8.0 million for the 2024 half year (H1 2023 $7.2 million), a year-on-year increase of 10.9%. Including an accounting adjustment of $7.3 million relating to the fair value of the QuayStreet earnout provision, reported NPAT was $15.3 million, up 119.0%.