1 May 2014

NZX operator sees revenue grow

1:36 pm on 1 May 2014

The New Zealand stock exchange operator says its growth in revenue for the three months to March was driven by strong growth in its capital markets business.

NZX's total group revenue for its first quarter rose 6.6 percent to $15.1 million.

The NZX says the Government's privatisation programme has been critical for the development of the country's capital markets.

That programme includes listing Mighty River Power, Meridian and the sell-down of the Government's shares in Air New Zealand.

It also includes the float of Genesis last month, and while none of this fell within the operator's first quarter, these companies comprise 7.3 percent of total market capitalisation.

NZX chief executive Tim Bennett says the combination of this and the impact of KiwiSaver is underpinning a structural shift in capital markets.

The operator's first quarter was also bolstered by increased trading volumes in its soft commodities business, which includes its dairy derivatives and its Clear Grain Exchange. Revenue was up nearly 41 percent to $671,000.

A rebound in rural advertising also contributed positively to the quarter, with advertising pages up 18.8 percent in its agricultural publication business which includes Farmers Weekly, and subscriptions improved by 7.4 percent in the period.

Revenue in that business rose 8 percent to $2.9 million