NZX full-year profit rises 17%

Monday 23rd February 2009

NZX manager of the New Zealand stock exchange, posted a 17% increase in first-half profit as it trimmed expenses as trading volumes fell.

Net income rose to $10.2 million, or 41.44 cents a share, from $8.7 million, or 6.17 cents a year earlier, the company said in a statement. Sales rose to $32.2 million from $31.5 million, while operating costs fell 7% to $15.5 million.

"NZX has operated in an environment of de-leveraging, declining asset values, reduced listing activity in the face of volatility, and the reshaping of global financial institutions - yet a strong financial performance has still been achieved," chief executive Mark Weldon said.

Shares of NZX fell 1.8% to $5.50 and are down 27% in the past 12 months, better than the NZX 50 Index's 28% decline. The exchange released figures last month showing the value of trading dropped 18% last year as the economy fell into its first recession in a decade.

Weldon said today that profit growth was achieved in "extremely difficult trading conditions."

The biggest revenue gain came from the NZX Information business, where sales rose 17% to $12.3 million. Listings revenue fell 8% to $8.36 million.

The NZDX market grew 20% in 2008, with market capitalisation at $12 billion at the end of the year.

By Jonathan Underhill

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