NZX releases results

Thursday 15th April 2004

New Zealand Exchange Limited (NZX) has announced its operating result for the quarter ended March 31.

The result for the March quarter is a profit before tax of $1,300k (after tax $869k). The result for the quarter reflects increased trading over the comparative period in 2003 and continues the trading trend from the last quarter of 2003.

Revenue was $3,751k representing a 53.6% increase on the same quarter in 2003. The increased revenue is a direct reflection of the trading activity, increased market information sales, new pricing (which took effect in July 2003) and increased listings for the quarter which generated $194k (March 2003 nil).

The volume of equity trades in the March quarter increased 13.3% over the same quarter last year to 136,982. The value in equities traded in the quarter ended March 2004 increased 29.8% to $5,751m on the same quarter in 2003.

Expenditure for the quarter of $2,451k represents an increase of 23.6%. This is predominately made up of previously outsourced work which has been brought in house resulting in new staff being employed to implement existing and new initiatives. All other expenditure, although higher than last years average is at an acceptable level.

NZX is pleased with the result for the quarter which continues to be ahead of the cash flow projections presented in the June 2003 Investment Statement and Prospectus.

These financial results are for New Zealand Exchange Limited only and do not include the consolidation of NZX Funds Management Limited. There is nil impact on profitability as a result of not consolidating this subsidiary. The results are unaudited.

Key Financial Information for the Quarter:

Revenue of $3,751k

Listing revenue $1,211k

Trading, clearing & settlement revenue $987k

Market Information revenue $670k

Surveillance Fees $306k

Participant Fees $106k

Interest Income $342k

Expenditure of $2,451k

Staff and related costs $1,348k

Information Technology $299k

Net earnings after tax of $869k

EBITDA of $1,067k

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