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NZX has released its Group Q1 financial result showing EBITDAF up 60% on the previous quarter. There are three main areas to highlight in NZX's Q1 2010 financial results.
First, there is a significant improvement in NZX's operating profitability as against the prior period. NZX has seen, over Q1, both its operating EBITDAF and operating margin strongly rebound from Q4 2009. NZX expects to see earnings and margin steadily improve over the remainder of 2010. EBITDAF has increased by 60% against Q4 2009. This improved EBITDAF result is largely a consequence of active cost management.
Second, operating expenses have materially reduced, reflecting active integration of the acquired businesses foreshadowed in the 2009 full year result. As against Q4 2009, operating expenses have fallen by 18%. The bulk of these cost improvements have been achieved through active integration of activities and the cost base. NZX expects this cost reduction trend to continue throughout 2010.
Third, overall revenue was up 1%, with some positive signs regarding the remainder of 2010. There are strong indications in the market data business that the bottom has been reached, and the upswing initiated - with market data terminal numbers rebounding for the first time in over 15 months. In addition, both the post trade systems and trading areas delivered double digit revenue growth. Gains in these areas were countered by the low seasonal period in the agri-business area, where revenue fell 4%. On aggregate, NZX expects that Q1 will be the weakest revenue quarter over each given calendar year.
http://companyresearch.nzx.com/corporate/NZX/icentre.php?menu=NZX
