NZX today announced a Q3 2007 EBITDA result of $3.93 million. This represents a 70% increase on the $2.31 million result recorded for Q3 2006. Net profit after tax reached $2.29 million, an increase of 49% over the same period in 2006.
I. NZX Group Performance Summary – Year to Date
- EBITDA: 90% increase to $11.08 million year to date versus $5.84 million in 2006.
- Operating revenue: $23.09 million year to date, versus $16.43 million in 2006, an increase of 40%.
- Operating Expenses: $12.01 million year to date, versus $10.27 million in 2006, an increase of 17%.
- Earnings after tax: 76% increase to $6.50 million versus $3.70 million in 2006.
II. NZX Group Performance Summary- Q3 2007
- EBITDA: 70% increase to $3.93 million versus $2.31 million in Q3 2006.
- EBITDA Margin has increased from 39% in Q3 2006 to 49% for Q3 2007.
- Operating revenue: $8.04 million, versus $6.0 million in Q3 2006, an increase of 34%.
- Operating Expenses: $4.1 million, versus $3.66 million in Q3 2006, an increase of 13%.
- Earnings after tax: 49% increase to $2.29 million versus $1.54 million in Q3 2006.
NZX CEO Mark Weldon said, “The NZX Group has delivered a strong third quarter result, with continued strong revenue growth the highlight in what was a very volatile market environment. In previous results announcements we have highlighted that NZX has pursued a growth and resilience strategy. Its success is evidenced in ongoing revenue and margin growth and financial performance that is increasingly independent of short term market sentiment and conditions."
III. NZX Markets Business Highlights
- The NZX Markets business continues to perform well reflected in a 74% year-on-year EBITDA improvement on Q3 2006. Operating revenue grew to $7.37 million from $5.38 million in Q3 2006, an increase of 37%.
- Total Listings revenues grew to $2.314 million – a 19% improvement on Q3 2006. There were new listings on all NZX Markets in Q3.
- The NZX Market data business generated $2.84 million revenue in Q3 2007, an increase of 116% over the same period in 2006. The data business subsidiaries now include NZX Agrifax, providing rural market data; FundSource, providing managed funds data; NZX company research service, offering packaged financial data solutions and NewsRoom, an information tool for news monitoring.
- The number of NZX Data real time terminals is up 12% since Q3 2006, with 9,965 terminals worldwide at the end of Q3 2007.
- Trading, Clearing and Settlement revenue reached $1.26 million against $1.15 million for Q3 2006. The new Trayport GlobalVision trading system was launched at the beginning of Q3 with a seamless go live.
- The NZX Operating Metrics for Q3 2007 showed average daily trades up 12% and average value traded up 4% on the same period last year. Trading system developments, Kiwisaver and the future launch of new market products are expected o have a positive impact on the liquidity of NZX Markets.
- NZX is moving to a substantially upgraded Clearing and Settlement System, including a Central Counterparty function, in 2008. This will allow NZX to introduce a range of options, derivatives, and commodities contracts.
IV. NZX Subsidiaries and Associate Businesses
Smartshares
- Operating revenue year to date is up 54%, with revenue reaching $748,000 in Q3 2007, a 22% increase on the same period last year. Operating EBITDA in Q3 was $109,000 compared with $128,000, a 15% decrease on same period in 2006. The 15% decrease in EBITDA was driven by a number of one-off costs associated with tax legislation changes in relation to the PIE regime and the setting up of a Kiwisaver compliant fund (Smartkiwi).
- Smartshares finished Q3 2007 with $591 million in funds under management, up 28% on the same period last year. At the end of Q3 2007 Smartshares had 15,372 unit holders, a 5% increase on the same period last year.
Link Market Services
- Link Market Services, an equity accounted joint venture, produced a YTD 2007 EBITDA result of $625,000 compared with $47,000 for the same period in 2006. Link Q3 EBITDA was $119,000.
- LINK Market Services has returned $400,000 in 2007 to its shareholders through the redemption of preference shares. LINK’s performance continues to show strong YoY growth.
Download Q3 2007 NZX Operating Metrics here
Download Q3 Statements of Financial Performance here