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.
No comments yet
Gold Report 21st May 2019
NZ dollar falls after RBA governor flags potential rate cut
ASB reviews ownership of Aegis
Auckland Airport kicks off next phase of expansion
Cashed-up Plexure eyes acquisitions to accelerate growth as loss shrinks
Tower turns to 1H profit, lifts FY guidance
IRD should have doubled claim against Watson's Cullen Group - Professor
Investore FY profit falls 16% on smaller valuation gain, signals flat dividend for 2020
Synlait receives cease and desist letter regarding Pokeno plant
21st May 2019 Morning Report