The NZX reported higher earnings for the year ended December, reflecting a large cutback in operating costs.
Operating earnings for New Zealand's listed stock exchange were up 33.1% at $28.3million from total revenue of $75.2million.
Earnings before interest and tax were up 45.5% to $21.2million and the reported profit of $14.8million was up more than 60% on the $9.2 million in the previous corresponding period.
Forsyth Barr broker Damian Foster said NZX increased its dividend slightly to 6.1c per share in the 2017 financial year, its first dividend increase in three years.
``Management have cited this reflects its confidence in delivering improved profitability following its strategic refresh.''
The company was also bringing in a dividend reinvestment plan (DRP), which would be in place for the 2018 interim result.
NZX's focus on its new strategic objectives and efforts to drive cultural change were encouraging, although it was very early in the process, Mr Foster said.
NZX chief executive Mark Peterson said the result was underpinned by disciplined cost management, efficiency improvements and a strong focus on customers.
Business highlights included the performance of the Smartshares Exchange Traded Funds business, which delivered double-digit growth and record retail numbers.
The dairy derivatives market presented an opportunity for sustained long-term profitability for the exchange.
``Public markets play a vital and active role in the New Zealand economy and it is important we drive initiatives to support this.''
New Zealand's capital market must have more investable product, greater participation, deeper liquidity and a global presence, he said.
Revenue in the NZX's core markets business, which included issuer, participant and data services, derivatives and markets operated for Fonterra and the Electricity Authority, were down 2.3% to $52.3million, reflecting 2017's subdued capital-raising environment.
Annual listing fees revenue increased 11.4% on last year, largely due to growth in the debt market, where $3.2billion of new debt was listed through 20 separate issues.
New debt market listings last year included Summerset Group, Heartland Bank, Property for Industry and Christchurch Holdings.
The 2018 financial year would set the platform for the exchange's future growth, Mr Peterson said.
The divestment of non-core assets, including Farmers Weekly, and changes to the clearing and trading pricing structure in the second half of this year would reset the 2018 operating result.
For the 2018 financial year, the board expected operational earnings to be in the range of $29million to $31million.
