Stock market operator NZX reports 15% drop in 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

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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 said the drop in profit was a result of a lower return on investments and increased costs, including ongoing investment 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, chairperson James Miller said the company was operating amid increased market volatility and expected a further tightening in 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 was committed to growing its business by way of strategic partnerships with other market operators around the world, he said.

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.

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Part of the money would help pay for a third stake in the Global Dairy Trade (GDT) in partnership with the European Energy Exchange (EEX) and the owner of GDT, the dairy cooperative Fonterra.

The deal to buy GDT was subject to regulatory and shareholder approvals.

NZX shareholders would be offered an opportunity to buy one share for every nine held for $1.42 each.

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