NZX third quarter revenue rises 3.9% on by debt market listings, funds management
"The most significant contributors to this growth were higher funds management revenues and listing fees for new debt listings."
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NZX's third-quarter revenue rose 3.9% as the stock market operator's sales were bolstered by a flurry of new debt listings and an expanding funds management business.
The Wellington-based company's revenue from its dominant capital markets division rose 5.4% in the three months ended September 30 from the same period a year earlier, largely due to $2.16 billion of new debt being listing in the quarter, it said in a statement. Low interest rates have spurred companies to raise funds through listed bonds, reviving what had been a moribund part of the market in recent years.
NZX's funds management business boosted revenue 21% in the quarter, with its Smartshares exchange traded funds and SuperLife division expanding their funds under management and its wealth technologies platform attracting Craigs Investment Partners and Macquarie Equities New Zealand as new customers.
"The most significant contributors to this growth were higher funds management revenues and listing fees for new debt listings, which continues an exceptionally strong year for New Zealand's listed debt market," NZX said.
Earlier this month the stock market operator warned earnings before interest, tax, depreciation and amortisation will be at the lower end of its previous guidance of $22.5-26.5 million due to the cost of hiring a new chief executive and restructuring its agri division.
NZX's agri business struggled in the quarter as last year's slump in dairy prices sapped confidence in the rural economy, with advertising sales down 39% and agri information revenue falling 19%. The Clear Grain Exchange, which has been the subject of protracted litigation, more than doubled the volume traded in the quarter, leading to an 85% increase in revenue.
The shares fell 1% to $1.02, having declined 3.7% so far this year.
(BusinessDesk)
Paul McBeth
Mon, 31 Oct 2016
Mon, 31 Oct 2016
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NZX third quarter revenue rises 3.9% on by debt market listings, funds management
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