Sharechat Logo

NZX first-quarter revenue edges up with busier secondary market

Friday 20th April 2018

Text too small?

NZX's first-quarter revenue edged up 0.8 percent as activity on the secondary market remained busier and its burgeoning funds management unit continued to swell, offsetting the lack of new issuers.

 

Revenue rose to $17.9 million in the three months ended March 31 form $17.7 million a year earlier, Wellington-based NZX said in a statement. Issuer relationships remained its biggest income generator at $5.3 million, down from $5.9 million a year earlier as listing fees remained flat. Secondary markets revenue was more robust, up 10 percent to $4.1 million with double-digit gains in securities trading and securities clearing. 

 

NZX is doubling down on its core markets business, with a particular focus on improving liquidity on the local market, and is consulting with industry on how to get more trading through the formal market as opposed to off-market trades, which is seen as undermining efforts to lift price transparency. 

 

As part of that plan, the stock market operator is overhauling its price structure, bringing its trading and clearing model into line with global practice, and a pilot using a tailored pricing structure that started in July has been successful in lifting on-market trading. 

 

Today's figures show NZX's data and insights division reported a 6.4 percent decline in revenue to $2.6 million while agri revenue was flat at $1.9 million. 

 

NZX's funds service division boosted revenue 15 percent to $3.9 million, with funds management delivering a 21 percent gain in sales to $3.6 million, largely matching the growth in funds under management for its Smartshares funds, which sat at $2.22 billion as at March 31. 

 

The company forecasts operating earnings of between $28 million and $31 million in calendar 2018, compared to $29 million last year.

 

The shares last traded at $1.08 and have declined 3.6 percent so far this year. 

 

(BusinessDesk)

  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comment:
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Related News:

MARKET CLOSE: NZ shares dip as Fletcher gives up pursuit of Steel & Tube
NZ primary sector exports seen rising 2.5% to $43.8B in June 2019
NZ dollar inches above 65 US cents ahead of 3Q CPI data
Salt Funds to open up carbon trading to retail investors in NZX-listed fund
ComCom wants more transparency about Fonterra's processing capacity
Jenny Shipley says Mainzeal directors in
Self-regulation of vehicle inspection and licence failed, says NZTA chair Stiassny
Fletcher quits pursuit of Steel & Tube after failing to win over board
NZ service sector activity lifts in September but still below long-term average
Fulton Hogan heads off quarry quandry by leaving Huntly site

IRG See IRG research reports