Total revenue of $8.294 million was earned for the six months ending 30 June 2004 representing top-line revenue growth of 52.4% from the 30 June 2003 six month figure of $5.442 million.
Earnings growth came predominantly from growth in listing revenue due to increased issuer market capitalisations, growth in new listings, an increase in trading revenue and the increased sale of market information. The growth in revenue in these areas represents a combined increase of 39.5% on the same period last year.
EBITDA for the six months was $2.535 million representing an increase of $1.841 million over the six months 30 June 2003.
New Zealand Exchange Limited - Group Result
| 6 months June 2004 | 6 months June 2003 | 12 months Dec 2003 | |
|---|---|---|---|
|
|
|
|
Total Revenue |
8,294 |
5,442 |
13,688 |
|
|
|
|
Operating Expenses |
5,261 |
4,741 |
9,469 |
|
|
|
|
Non Recurring Income |
- |
116 |
188 |
|
|
|
|
Earnings before tax |
3,033 |
817 |
4,407 |
|
|
|
|
Tax expense |
1,003 |
233 |
1,464 |
|
|
|
|
Net Earnings |
2,030 |
584 |
2,943 |
|
|
|
|
Interest Income |
740 |
302 |
1,047 |
|
|
|
|
Depreciation |
242 |
179 |
389 |
|
|
|
|
EBITDA |
2,535 |
694 |
3,749 |
|
|
|
|
"Given the amount of energy that has gone into market and structural reform over the past 12 months, we are pleased with this preliminary result," said Simon Allen, NZX Chairman. "With the majority of these reforms now complete, we can shift our focus fully towards growing the business and driving liquidity into the New Zealand market."
"We are confident that the new participant structure, along with the development of the NZAX Market, will continue to grow interest in our markets," said Allen.
Expenditure for the period was $5,261,000 compared with $4,741,000 in the corresponding period last year. This represents an increase of 11% and is primarily due to hiring the staff required to service new initiatives, grow long term revenue and investigate new business opportunities.
"Our ongoing focus will be on the continued development of the existing business while investigating new business initiatives that will provide real value to our shareholders" said Mark Weldon, NZX CEO. "Our goal with any development is to more closely align NZX with the needs of our customers and stakeholders in order to make it easier for them to do business with us. We believe this committed focus will deliver more diverse revenue streams and improve our service offering to key customer segments."
The increase in value of NZX's benchmark index, the NZSX50, reflects a continued strong equities market performance. There has also been a corresponding increase in market participation. Key six month market metrics include:
- 10% increase in NZSX50 index
- 25% increase in value traded from $9,598 million to $12,028 million
- 5% increase in the number of trades from 265,633 to 278,544
"The encouraging performance of the New Zealand market in the first six months of 2004 represents continued confidence in our economy in general and the health of our listed issuers," said Weldon.
