15 Aug 2018

NZX's first-half profit drops as it restructures for growth

3:04 pm on 15 August 2018

Market operator NZX's first-half profit is down nearly 45 percent as the company continues to make changes to improve the performance of the business.

NZX in Auckland.

NZX made a net profit of $4.4 million in the six months to June. Photo: 123RF

The company made a net profit of $4.4 million in the six months to June, compared with $8m the year earlier, reflecting changes from discontinued businesses and increased costs.

The underlying profit was down slightly at $13.2m.

Total revenue rose 2 percent to $33.4m driven by strong growth in trading and clearing fees and funds management revenues.

However, income from its issuance, listing and consultiung operations dropped by more than 4 percent.

Costs from continuing operations rose 7.3 percent as a result of increases in marketing, cyber security, the dairy derivatives market, one-off staff costs, and investment to grow its funds under management.

Chief executive Mark Peterson said the company had materially advanced the business in the first six months of a five-year strategic plan outlined in November.

"We are pleased with progress being made across the key strategic areas fundamental to our future growth, and remain on track to deliver within the earnings guidance range provided in February 2018."

He said the company's underlying profit is tracking to full-year guidance of between $28m and $31m.