NZX, the only registered securities exchange in New Zealand, today revealed its financial metrics for the first half of 2017, which reflected a mixed performance overall. The group’s revenues were slightly lower year-over-year, while operating costs saw a sizable decline relative to the same period a year ago.
During the six month period through June 2017, NZX reported its operating revenues at NZ$36.5 million ($26.5 million), moving lower by approximately 3.6 percent year-over-year.
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In addition, earnings before interest, tax, depreciation and amortization (EBITDA) were up 34.4 percent over last year’s figure to NZ$14.5 million ($10.5 million). NZX’s latest financial results did benefit from a significant reduction in operating expenses, having rescinded by 18.0 percent in H1 2017, relative to the year prior. This was driven by lower payroll, print and distribution costs, and the sale of the Agri business as well as lower costs in its funds business, due to the completion of the Financial Markets Conduct Act transition in 2016.
In terms of its net profits, NZX yielded a figure of NZ$8.0 million ($5.8 million), up 98% from the equivalent period in 2016, excluding impairment charges and earnout adjustments from the prior year result.
Commenting on the results, NZX CEO Mark Peterson said: “This is a very encouraging result for NZX. Over the past six months we have been focused on improving business performance, market development, and creating a refreshed five year strategic plan, which will strengthen our commercial position as we tighten our focus on capital and cost effectiveness.”
He added: “Highlights from the first half included our SuperLife and Smartshares businesses, which experienced substantial revenue growth, while our global dairy derivatives market has become a true point of difference for NZX, and is now making a meaningful contribution to our revenue line. Operating costs also reduced significantly due to the restructuring of the Agri business and the absence of one-off costs. Disciplined cost control has ensured that our core cost base has been well contained.”