Sharechat Logo

NZX 3rd-qtr revenue rises 3.9% on by debt market listings, funds management

Monday 31st October 2016

Text too small?

NZX's third-quarter revenue rose 3.9 percent as the stock market operator's sales were bolstered by a flurry of new debt listings and an expanding funds management business. 

The Wellington-based company's revenue from its dominant capital markets division rose 5.4 percent in the three months ended Sept. 30 from the same period a year earlier, largely due to $2.16 billion of new debt being listing in the quarter, it said in a statement. Low interest rates have spurred companies to raise funds through listed bonds, reviving what had been a moribund part of the market in recent years. 

NZX's funds management business boosted revenue 21 percent in the quarter, with its Smartshares exchange traded funds and SuperLife division expanding their funds under management and its wealth technologies platform attracting Craigs Investment Partners and Macquarie Equities New Zealand as new customers. 

"The most significant contributors to this growth were higher funds management revenues and listing fees for new debt listings, which continues an exceptionally strong year for New Zealand's listed debt market," NZX said. 

Earlier this month the stock market operator warned earnings before interest, tax, depreciation and amortisation will be at the lower end of its previous guidance of $22.5 million-to-$26.5 million due to the cost of hiring a new chief executive and restructuring its agri division. 

NZX's agri business struggled in the quarter as last year's slump in dairy prices sapped confidence in the rural economy, with advertising sales down 39 percent and agri information revenue falling 19 percent. The Clear Grain Exchange, which has been the subject of protracted litigation, more than doubled the volume traded in the quarter, leading to an 85 percent increase in revenue. 

The shares fell 1 percent to $1.02, having declined 3.7 percent so far this year.

BusinessDesk.co.nz



  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:

SML - Synlait Milk Limited - Trading Halt of Securities
AIA - Auckland Airport announces board chair changes
AIA - Auckland Airport announces board chair changes
CEN - Tauhara commissioning progress update
FPH initiates voluntary limited recall
March 28th Morning Report
KFL Celebrates 20 Years of Excellence in Investment Mgmt.
SVR - Savor FY24 Earnings Guidance & Change in Banking Partner
NZK - NZ King Salmon Investments Limited FY24 Results
March 27th Morning Report