Stock exchange operator NZX Ltd has reported a more than
8% increase in earnings, underpinned by a flurry of company
listings, and has hinted more listings are yet to be announced.
For its half year to June, NZX yesterday posted total
revenues up 2.8% to $31.2 million and after-tax profit up
8.3% to $7 million.
During the half year, $3.52 billion of new capital was
listed, down on the same period last year, but that had
included Mighty River Power's listing.
NZX chief executive Tim Bennett said the NZX's capital market
had continued its ''positive growth'', with seven initial
public offerings (IPOs) so far this year and more in the
NZX shares were up 1c at $1.28 after the announcement.
Craigs Investment Partners broker Peter McIntyre said the
result was ''largely in line'' with Craigs' expectations.
Revenue growth from stronger capital-markets activity and a
recovery in the agricultural business was largely offset by
the cost of more NZX staff during 2013.
While NZX saw a good pipeline of IPO work and additional
energy-contracting work as likely to drive second-half
revenue, Mr McIntyre also noted its caution over full-year
2015 agri-revenues, due to the recent global dairy price
Forsyth Barr broker Andrew Rooney also said the result was in
line with expectations, although the profit was slightly down
on expectations of $7.1 million.
He said the outlook commentary was positive, with no slowing
in the IPO pipeline and growth expectations from the Funds
Management business, potentially by acquisitive means.
''The key risk to earnings post-2016 remains the rolling-off
and re-tendering of the Electricity Authority energy market
contract, albeit increased energy consulting activity through
the second half of 2014 is expected,'' Mr Rooney said.
IPO activity on the NZX during the six months included
Genesis Energy, Inturei Education Group, Serco and Gentrack,
and second-half listings by IkeGPS, Scales Corp and Metro
Performance Glass, Mr Bennett said.
He noted Vista Group listed yesterday and ERoad, Pushpay and
Lateral Corp were scheduled for compliance listings during
the next two weeks.
As well as listing fees, Mr Bennett said they would also
provide recurring annual listing, trading and clearing
''It's worth noting that listings have a broader benefit for
New Zealand's capital markets, providing KiwiSaver funds with
businesses to invest in, bringing new investors to the
market, and continuing to generate interest in saving and
investing,'' he said.
Mr Bennett said the NZX's development of a new ''growth
market'', for small and mid-sized businesses, was
He estimated it would be launched during the fourth quarter