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NZX has released its 2008 full year result showing NPAT up 17% to $10.18 million for 2008.
NZX CEO, Mark Weldon said, "Under extremely difficult trading conditions, NZX has delivered very strong profit growth in 2008. NZX has operated in an environment of de-leveraging, declining asset values, reduced listing activity in the face of volatility, and the reshaping of global financial institutions - yet a strong financial performance has still been achieved.
"The 2008 financial result, with NPAT up by 17%, is a very strong performance, and reflects the success of the strategic reshaping of the business that has been underway for the last three years. The best indication of the strength of the underlying franchise and strategy is that excluding TZ1, NZX operating EBITDA was up 28% in 2008, while the TZ1 Registry, an NZX investment, is currently in the due diligence stage of a sale for NZ $66 million." For comparison, the last results released by regional peer exchanges all show declining profitability. ASX NPAT was down over 8%, Singapore Exchange NPAT was down 37% and Bursa Malaysia NPAT was down 57%.
NZX's key investments in 2008 were predominantly offshore. NZX acquired two Australian agricultural businesses, became the largest shareholder in the Bond Exchange of South Africa, and grew a wholly-owned subsidiary, TZ1 Registry, that is now a global leader for the provision of environmental markets infrastructure.
"NZX is no longer solely an exchange business. Our operating footprint spans a range of sectors and international markets. For example, NZX is now the leading provider of dairy and agricultural financial information and research, under its NZX Agrifax and Dairy Week brands.
"Global capital market volatility has thus impacted NZX's revenue growth to a much lesser extent than our exchange peers, and NZX has come through 2008 in a position of significant financial strength.
"NZX also expanded margins for the sixth year in a row. This is a result of a very effective cost management and productivity programme," said Weldon.
Download the full NZX Annual Result announcement here
Download full Financial Statements here
