NZX first-quarter revenue dips 1.7% as agri sales slide

Monday 1st May 2017

NZX revenue dipped 1.7 percent in the first three months of the year as sales from the stock market operator's recently overhauled agri division slumped by almost a third.

Revenue fell to $17.7 million in three months ended March 31 from $18 million a year earlier, the Wellington-based company said in a statement. Its agri division was the only unit to post a decline in revenue, falling 30 percent to $2.1 million. Agri was a drag on NZX last year, prompting the stock market operator to quit its Clear Grain Exchange and scale back its rural publications.

NZX's central markets division posted a 3.7 percent increase in revenue to $12.3 million while its burgeoning funds management business boosted sales 5.1 percent to $3.4 million.

Last month the stock market operator appointed Mark Peterson as chief executive and tasked him with growing the business to compete more effectively on the domestic and international fronts. Peterson had been acting CEO since Tim Bennett departed at the end of last year, and was previously NZX's head of markets.

NZX is forecasting earnings before interest, tax, depreciation and amortisation of between $27 million and $30 million in calendar 2017, depending on the level of initial public offerings, secondary capital raisings, and trading and clearing volumes across its various markets.That would be up from $22.5 million last year.

The stock market will welcome its first initial public offering at the end of this week when aged care operator Oceania Healthcare joins the bourse having raised $200 million.

NZX shares last traded at $1.07, and have increased 1.9 percent so far this year.

(BusinessDesk)

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