The New Zealand Stock Exchange operator, NZX, yesterday reported a much improved operating profit of $11.55 million for the six months ended June.
The profit was a 36% improvement on the previous corresponding period.
Revenue was up 11% to $26.6 billion while expenditure fell 3% to $14.9 million. The profit after tax fell 21% to $4.51 million.
NZX chief executive Mark Weldon said standout units were the markets business, where revenue rose 15% to $10.3 million, while the infrastructure business - which operates clearing and settlement platforms in securities and energy - had a 21% rise in revenue to $6 million.
Revenue in the information business for the six months was 2% higher than a year earlier at $10.2 million.
While revenue from agri-information activities rose 7% to $5.7 million, securities information revenue fell 3% to $4.5 million amid flat market data volumes and an appreciating US dollar, the currency in which data terminals are priced.
NZX chief executive Mark Weldon said the company expected a strong second-half trend again this year, reflecting seasonal factors, price adjustments across a large percentage of the revenue base introduced on July 1, and factors particular to the 2011 outlook.
Craigs Investment Partners broker Chris Timms said NZX was traditionally a second-half-year business, with an average of 54% of annual revenue earned in the second half during the past five years.
"There was no specific guidance issued but comments were positive. NZX also indicated that staff costs were expected to decrease by 5% in the second half," he said.
Benefits were expected from the Telecom split, effectively two initial public offerings (IPOs), plus several IPOs deferred from the first half.
However, several of the IPOs were dependent on market conditions.
Benefits were also expected from price increases of 3%-60% of its services from July 1.
