By Jeff Patterson
The New Zealand Exchange (NZX) has reported its financial results for H1 2015, ending June 30, 2015 – the latest figures outline NZX’s funds management strategy as well as mixed performances across its business.
During H1 2015, NZX saw its revenues soar to $3.2 million, up a staunch 10.4% YoY from H1 2014, due in large part of acquisition of SuperLife Limited. This move helped pave the way for an augmentation of Exchange-Traded-Funds (ETF) offered as a component of NZX’s business.
Trading volumes also appeared to be on the uptick in H1 2015. Indeed, NZX yielded gains in both trading volume and value at 5.5% and 1.9% YoY respectively from H1 2014. Furthermore, the Kiwi exchange saw a 4.9% increase in securities trading revenue and a 9.5% increase in securities clearing revenue.
Alternatively, the upbeat news of mounting revenues was slightly offset by NZX’s EBITDAF, which came in at $11.7 million in H1 2015, down -3.6% YoY. Professional fees as well as the aforementioned ETF demand managed to mitigate this figure slightly. In terms of NZX’s reported NPAT, the exchange notched a gain of 157.9% YoY, justifying a figure of $18.0 million in H1 2015.
However, in the absence of an $11.8 million gain from the recent 50% shareholding sale in Link Market Services NZ, its NPAT was down -11.5% during the same period.
According to NZX’s CEO Tim Bennett, in a recent statement on the H1 2015 financial metrics, “This result demonstrates the strong progress we have made in 2015 to expand NZX’s funds management business, along with the resilience of our capital markets revenues, despite an absence of any significant IPO activity during the period.”
“We saw a significant milestone in the first half of 2015, with total equity market capitalisation topping $100 billion for the first time and continued growth in trading activity. The continued rapid growth of our dairy derivatives market is another notable feature of the result,” he added.
Finance Magnates recently spoke with Mr. Bennett for his perspective on the state of New Zealand as a haven for investors. In the interview, he detailed the components of NZX’s business and future strategy for the exchange.
