NZX’s Q1 Financials a Mixed Bag, Revenues Static

The NZX has published its financial results for Q1 2017, which reflected a mixed performance overall. The group’s revenues were largely unchanged, albeit slightly negative, while operating costs were sizably lower relative to the year prior.

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In terms of its financial metrics, NZX’s overall operating revenue slid slightly to $12.1 million (NZ$17.7 million) during Q1 2017, moving lower by approximately -1.7 percent year-over-year from $12.4 million (NZ$18.0 million) in Q1 2016. One of the biggest laggards in Q1 was NZX’s Agri business, which plunged -30.4 percent year-over-year in Q1 2017 relative to Q1 2016.

In the markets space NZX reported a total of $8.5 million (NZ$12.3 million) during Q1 2017, advancing 3.7 percent year-over-year from $8.1 million (NZ$11.8 million) in Q1 2016. Its largest increases were seen across its Dairy Derivatives business (101.7 percent year-over-year) and Securities Information (8.0 percent year-over-year).

NZX’s latest volumes across cash market trading in Q1 2017 saw a figure of 419,842, which corresponded to a loss of -5.1 percent year-over-year from Q1 2016. The group’s NZX’s average daily trades during Q1 2017 were reported at 6,772 trades, down by a factor of -8.1 percent year-over-year from Q1 2016.

Additionally, the NZX’s total value traded during Q1 2017 also fell to $9.1 billion, down -9.1 percent year-over-year from Q1 2016, indicative of a much lower performance overall relative to the year prior.

Finally, NZX’s latest financial results did benefit from a significant reduction in operating expenses, having rescinded by -17.0 percent in Q1 2017, relative to the year prior. This was driven by lower payroll, print and distribution costs, and the sale of parts 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.