NZX lifts first half net profit

Stock exchange operator NZX said today it had lifted its June half year net profit 47 per cent to $2.18 million.

Earnings before interest, tax, depreciation and amortisation (ebitda) rose 27 per cent to $3.56m.

Operating revenue rose 21 per cent to $10.44m and expenses rose 13 per cent to $6.56m.

No half year dividend will be paid. A capital repayment of $16.2m, equating to $1.21 a share announced earlier will be paid next month.

NZX confirmed it would pay out 60 per cent of net profit at the completion of its financial year. Last year, NZX paid a dividend of 25 cents per share.

"This result was achieved on a solid operating margin performance," NZX chairman Simon Allen said.

"We are further establishing a position whereby new business revenue grows faster than expenses and new, high quality revenue streams can be driven by an existing, and stable, cost base," chief executive Mark Weldon said.

Revenue earned from Market Information jumped from $1.4m to $2.3m.

On the listings side, a combination of this half year's IPO activity, strong issuance on the NZDX Market and a significant amount of secondary capital-raising has led to listings revenue rising 20 per cent to $3.2m.

Over the first half of 2006, 15 new listings raised a total of $2 billion across all three NZX markets this half year.

This augured well for the general investment climate, Mr Weldon said.

Trading, clearing and settlement revenue grew $100,000 to $2.4m.

In its funds management business its Smartshares product had $460m under management.

NZX shares last traded at $5.90.

- NZPA