NZX, a stock market operator, reports a 15% decline in its full-year profit

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Stock market operator NZX has reported a 15 percent drop in full year profit, and a plan to raise $44 million to buy a stake in the Global Dairy Trade business.

NZX sign

File image.
Photo: RNZ / Angus Dreaver

Latest figures compared with the previous year’s earnings

  • Net profit $15m vs $17.6m
  • Operating earnings $34.4 vs $34.4m
  • Revenue $88m vs $78.4m
  • Full year dividend 6.1 cents per share vs 6.1cps

Chief executive Mark Peterson stated that the decrease in profit was due to increased amortisation and depreciation costs. He also mentioned ongoing investments in technology.

However, revenue rose 12 percent with growth across its business units, he said.

The total value of new and secondary capital raised rose 12 percent to $19.8 billion, with nine new companies listed on the main board.

“We have continued to deliver growth in 2021 across all major business areas and we have made a step change in our investment to support additional capacity, capability, and to enhance the security of our operating platform,” Peterson said, adding the growth would continue through 2022.

However, James Miller, the chairperson of the company, stated that they were operating in an environment of increased volatility in the market and that they expected tighter financial conditions.

“Accordingly, the NZX board has conservatively positioned expectations for full year 2022 operating earnings to be in the range of $33.5m to $38m,” Miller said.

The company is committed to expanding its business through strategic partnerships with market operators around the globe, he stated.

As part of its growth strategy NZX also announced it would raise about $44m by way of a underwritten pro-rata renounceable entitlement offer of NZX shares.

A third stake in Global Dairy Trade (GDT), in partnership with European Energy Exchange (EEX), and Fonterra, Fonterra’s owner of GDT.

The deal to purchase GDT was subjected to shareholder and regulatory approvals.

NZX shareholders will be able to purchase one share for each nine shares held at $1. 42 each.

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