KEY POINTS:
Sharemarket operator New Zealand Exchange has reported a 34 per cent increase in annual net profit after tax to $8.7 million.
NZX chief executive Mark Weldon said revenues grew faster than costs, and both earnings and margins improved significantly.
Group earnings before interest, tax, depreciation and amortisation rose 41 per cent to $14.7m, while operating revenue rose 26 per cent to $31.5m. Operating expenses were up 17 per cent to $16.7m.
Mr Weldon said the result was evidence of the resilience and strength of the business in a year where market conditions were characterised by uncertainty and volatility.
Key contributions came from the data and listings areas, with a particularly strong showing by secondary capital raisings, he said.
Also worth noting were the improved contributions from Smartshares and a much improved year from Link Market Services.
Most of the increase in operating expenses was in relation to employee costs associated with businesses purchased in the second half of 2006 and 2007.
NZX also opted to make the maximum 4 per cent employer KiwiSaver contribution from the July 1, 2007 KiwiSaver launch date.
Australian venture AXE had experienced delays in regulatory approvals, which NZX was confident would be resolved early in 2008, Mr Weldon said.
The company lifted its fully imputed dividend to 21 cents per share from 16 cents a year ago.
NZX Markets operating revenue grew 24 per cent to $28.55m.
The NZX market information business generated 72 per cent more revenue to $10.54m with strong demand for NZX data. Growth also came from its acquired news and information businesses - Company Research Centre (formerly IRG Data), NZX Agrifax, FundSource and NZX NewsRoom.
Listings revenue grew 12 per cent to $9.1m and trading, clearing and settlement revenue rose 3 per cent to $4.85m.
NZX shares last traded at $7.75, down from $11.80 in July last year.
- NZPA
