- Operating EBITDA: $6.25 million year to date versus $5.35 million for the same period in 2005, a 17% increase.
- Operating revenue: $16.4 million year to date versus $14.2 million for the same period in 2005, a 16% increase.
- Operating expenses: $10.2 million year to date, versus $8.8 million for the same period in 2005, a 15% increase.
- EBIT: $5.18 million year to date versus $3.86 million for the same period in 2005, a 34% increase.
Third quarter operating revenue increased to $6.0 million from $5.54 million in the same period of 2005, while interest income fell. At the same time, operating expenses increased to $3.62 million from $3.02 million in the third quarter of 2005 (see Section II below).
II. Q3 Business Highlights“The result across the NZX Group for the quarter is strong evidence of a focused strategy, shown by strong revenue growth from Market Information, the debt market and secondary capital-raisings, and good revenue diversification from Smartshares, LINK and our new data businesses. NZX's business portfolio now ensures resilience against external market factors,” said NZX CEO Mark Weldon.
NZX Markets
- The announcement of NZX's intention to launch an Electronic Communications Network (ECN), in partnership with five major Australian banks, during 2007.
- The acquisition of FundSource to further augment NZX's Market Information businesses.
- Substantial revenue growth from the Market Information business for the third quarter to $1.32 million, compared with $853,000 over the same quarter last year.
- Nine new warrants listed on the NZSX market.
- Q3 cost increases reflecting feasibility and related costs on NZX's behalf associated with the Australian ECN, and staff hired to manage the NZX service delivery of Market Supervision and Market Operation services to the ECN. NZX expects that, upon launch of the ECN, there will be significant services revenue associated with these costs, as well as potentially reduced levels of overall technology costs to NZX as a result of spreading single technology solutions over two markets.
- Trading, clearing and settlement revenue was $1.15 million, compared with $1.35 million in the same quarter last year. Flat earnings in this business reflect the slowed activity levels seen in the markets over the last quarter. Whilst NZX believes the worst of these conditions is over, the results reflect that NZX has minimised its vulnerability to these external factors. Interest income has fallen since the capital payback in July.
Related Businesses
- Continued improved financial performance from Smartshares. Smartshares operating revenue for the third quarter was $615,000, compared with $398,000 for the same quarter last year. Operating EBITDA was $128,000 compared with $23,000 in the third quarter of 2005. Smartshares finished the quarter with $468 million in funds under management (FUM). The number of Smartshares unit-holders has increased to 14,645 from 10,910 at the same time last year.
- Strengthened EBITDA and free cash flow performance Link Market Services (LINK). An equity accounted associate company, LINK produced an improved EBITDA performance: the key metric in this business. NZX expects LINK to be in a position pay a dividend at year end as a result of this improvement.
The Statement of Financial Performance and Q3 2006 Operating Metrics are available to download from the NZX Website: www.nzx.com/aboutus/investor/financial.
