NZX posts 25 per cent rise in profit

The New Zealand Exchange (NZX) today reported a 25 per cent rise in net profit for the year ended December.

The stock exchange operator posted a net profit of $3.7 million, up from $2.9 million the previous year.

A special fully imputed 40c dividend will be paid in May.

Operating earnings before interest, tax, depreciation and amortisation (ebitda) rose 69 per cent to $6 million, up from $3.6 million in 2003.

Total revenue rose 32.1 per cent to $18.1 million from $13.7 million.

Chief executive Mark Weldon said NZX benefited from strong market conditions, which were reflected in more listings, initial public offers, and transactions. He said NZX had the second highest percentage increase in new listings for any exchange in the world.

Listing revenue for the year was $5.8 million, a 31.1 per cent increase over the previous year. The increase was driven by the addition of new listings -- 40 compared with 25 in 2003 -- and a pricing change implemented in July 2004.

"Total market capitalisation of listed companies increased by $11 billion, whilst the value traded increased to $28 billion, compared with $22 billion the previous year," he said in a statement.

He said new ventures such as Smartshares and the joint venture registry business Link Market Services were expected to contribute to further revenue growth in 2005.

"These, and other investments in NZX's portfolio, mean NZX is well positioned to deliver diversified shareholder value and growth in the future," Mr Weldon said.

Shares in NZX last traded yesterday at $9.55, having ranged between $6.90 and $9.75 over the past 12 months.

- NZPA