NZX Half Year 2016 Results Reflect Overall Strong Growth
- The latest results reveal a solid performance in NZX’s markets business and funds services.
NZX has published its financial results for the six months to 30 June 2016 demonstrating the strong performance of both its markets and funds services businesses while reflecting the strategic investments it has made.
Total NZX revenues for H1 2016 were reported to be $37.9 million, up 10.3 percent on the previous corresponding period.
EBITDA and gain on sale were down 8 percent to $10.8 million from $11.7 million in the same period last year. This was as a result of a $1.6 million increase in Ralec litigation costs, with the Ralec trial concluding in July. Excluding costs associated with the litigation, EBITDA was up 5.3 percent to $13.7 million, while net profit after tax was $3.6 million.
Increased Trading Revenues
Other highlights for the half year include increased trading revenues. Despite a decrease in monthly shareholder metrics for July 2016, the number and value of trades were up 35.8 percent and 24.5 percent respectively during the half year, largely driven by increased interest in NZX’s markets from offshore investors. This contributed to a lift in securities trading revenue and securities clearing revenue up 27.5 percent and 15.9 percent respectively during the period.
There was also continued growth in NZX’s Debt Market, with the equity and debt listing environment continuing to be stronger than in the same period last year coupled with growth in NZX’s funds services business following the launch of 18 new Smartshares Exchange Exchange An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv Read this Term Traded Funds (ETFs) during 2014/2015.
Acquisition
NZX also reported excellent progress by NZXWT which was acquired in August 2015, leading to the signing of its first major new client in August.
Commenting on the results, NZX Chief Executive Tim Bennett said: “Strong performance of our markets and successful Execution Execution Execution is the process during which a client submits an order to the brokerage, which consequently executes it resulting in an open position in a given asset. The execution of the order occurs only when it is filled. There is typically a time delay between the placement of the order and the execution which is called latency.In the retail FX space, reliable brokers always strive to deliver best execution to their clients in order to maintain a solid business relationship with them. This is a co Execution is the process during which a client submits an order to the brokerage, which consequently executes it resulting in an open position in a given asset. The execution of the order occurs only when it is filled. There is typically a time delay between the placement of the order and the execution which is called latency.In the retail FX space, reliable brokers always strive to deliver best execution to their clients in order to maintain a solid business relationship with them. This is a co Read this Term of our funds services strategy underpin NZX’s half year financial result. We are pleased the Ralec trial and associated costs, which weighed on our result, are behind us now. We continue to deliver against our strategic objectives to grow the business and the markets for the long term."
NZX has published its financial results for the six months to 30 June 2016 demonstrating the strong performance of both its markets and funds services businesses while reflecting the strategic investments it has made.
Total NZX revenues for H1 2016 were reported to be $37.9 million, up 10.3 percent on the previous corresponding period.
EBITDA and gain on sale were down 8 percent to $10.8 million from $11.7 million in the same period last year. This was as a result of a $1.6 million increase in Ralec litigation costs, with the Ralec trial concluding in July. Excluding costs associated with the litigation, EBITDA was up 5.3 percent to $13.7 million, while net profit after tax was $3.6 million.
Increased Trading Revenues
Other highlights for the half year include increased trading revenues. Despite a decrease in monthly shareholder metrics for July 2016, the number and value of trades were up 35.8 percent and 24.5 percent respectively during the half year, largely driven by increased interest in NZX’s markets from offshore investors. This contributed to a lift in securities trading revenue and securities clearing revenue up 27.5 percent and 15.9 percent respectively during the period.
There was also continued growth in NZX’s Debt Market, with the equity and debt listing environment continuing to be stronger than in the same period last year coupled with growth in NZX’s funds services business following the launch of 18 new Smartshares Exchange Exchange An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv Read this Term Traded Funds (ETFs) during 2014/2015.
Acquisition
NZX also reported excellent progress by NZXWT which was acquired in August 2015, leading to the signing of its first major new client in August.
Commenting on the results, NZX Chief Executive Tim Bennett said: “Strong performance of our markets and successful Execution Execution Execution is the process during which a client submits an order to the brokerage, which consequently executes it resulting in an open position in a given asset. The execution of the order occurs only when it is filled. There is typically a time delay between the placement of the order and the execution which is called latency.In the retail FX space, reliable brokers always strive to deliver best execution to their clients in order to maintain a solid business relationship with them. This is a co Execution is the process during which a client submits an order to the brokerage, which consequently executes it resulting in an open position in a given asset. The execution of the order occurs only when it is filled. There is typically a time delay between the placement of the order and the execution which is called latency.In the retail FX space, reliable brokers always strive to deliver best execution to their clients in order to maintain a solid business relationship with them. This is a co Read this Term of our funds services strategy underpin NZX’s half year financial result. We are pleased the Ralec trial and associated costs, which weighed on our result, are behind us now. We continue to deliver against our strategic objectives to grow the business and the markets for the long term."