Ann: FORECAST: NZX: Update on 2012 1H performance

• Release Date: 30/07/12 10:59
• Summary: FORECAST: NZX: Update on 2012 1H performance
• Price Sensitive: No
• Download Document  3.23KB

					

NZX
30/07/2012 08:59
FORECAST

REL: 0859 HRS NZX Limited

FORECAST: NZX: Update on 2012 1H performance

Update on 2012 1H performance

30 July 2012 - NZX's Half Year 2012 Operating Metrics, accompanying this
release, highlight the impact of a decline in capital markets activity during
the second quarter. This trend is similar to the decline witnessed in
offshore markets.

As is apparent from the NZX Operating Metrics released monthly, whilst
equities trading volumes continue to be higher than the previous year, value
traded has declined by 12.4% in the second quarter over the same period last
year consistent with trends seen in offshore markets.  Derivatives and
commodities trading continue
to show strong growth.
Listings and secondary capital raisings are down significantly on the same
period last year.

Whilst revenues in NZX's Information businesses have grown relative to 2011,
the strong uplift in Q1 2012 has pegged back in Q2.  This is both a
consequence of
lower seasonal activity and a more cautious setting in the rural economy.

Preliminary unaudited estimates indicate low single digit growth in total NZX
revenues for 1H 2012 over 1H 2011.

Preliminary unaudited estimates indicate an increase in total NZX expenses of
approximately $2 to 3 million in 1H 2012 versus the corresponding period last
year. Approximately two-thirds  of this increase is associated with the CEO
transition, the Clear Grain litigation and a number of non-recurring items.
The remainder reflects a reduction in the level of capitalisation of project
costs in 1H 2012 versus the prior corresponding period, due to a reduction in
the size of projects under development.

Based on preliminary unaudited estimates, EBITDAF for the 1H 2012 is
estimated to be between $9 and $10 million. Including the negative foreign
exchange impact resulting from settlement of the Markit transaction of
approximately $1.6 million, the preliminary unaudited estimated NPAT for 1H
2012 is between $3 to $4 million.
The outlook for 2H 2012 combines a traditionally stronger second half for
NZX's businesses with some significant market developments against the
backdrop of a challenging global economic environment.

Secondary issuance has picked up in July, and the anticipated start of the
MOM programme and the launch of Trading Amongst Farmers should underpin
increased listing and trading revenues.

The medium-term outlook for the business remains strong. The launch of equity
derivatives is planned for the first half of next year. NZX also plans to
launch a series of growth initiatives over the coming months to further
strengthen our global position in dairy derivatives and improve liquidity in
the equity market. Resources will also be invested in initiatives designed to
increase the attractiveness of listing for small and medium-size companies
seeking capital for growth.

To support these growth opportunities, expenses are expected to increase by a
moderate amount in the second half of 2012 on a year on year basis (excluding
costs associated with the trading system upgrade, Clear Grain litigation and
the launch of TAF).

A more detailed outlook will be provided with the first half results that are
scheduled for release on 20 August.

ENDS
End CA:00225428 For:NZX    Type:FORECAST   Time:2012-07-30 08:59:05