NZX increased profit 8.3 percent in the first-half and sees a similar gain in full-year earnings, as a flurry of listings boosts the stock market operator's income.
Profit rose to $6.97 million, or 2.7 cents a share, in the six months ended June 30, from $6.4 million, or 2.5 cents a year earlier, the Wellington-based company said in a statement. Sales rose to $31.2 million from $30 million. Profit was just below Forsyth Barr's estimate of $7.1 million.
Chief executive Tim Bennett told a teleconference he was comfortable with analyst forecasts for the full year, suggesting a 1.2 percent gain in revenue to $63.54 million and an 8.9 percent increase in net profit to $15.35 million.
NZX is experiencing a flurry of listings, with Intueri Education Group, the private tertiary education company, Genesis Energy, the last of the government's power companies to be partially privatised, Serko, a travel booking firm and Gentrack, an airport and utilities software developer, all listing in the first half. Since its June balance date three more companies have joined the bourse, while Vista International Group debuts today and ERoad launches on Friday.
"There are two structural things that are happening in New Zealand's markets which gives us confidence that this IPO activity will continue, even if there is a blip in the next 12 months," Bennett said. "We've got a strong desire for KiwiSaver mangers to invest in New Zealand, and secondly we're having very good dialogue with a large number of private companies about using the listed market as a way to raise capital, and I think both of those factors will continue for some time."