Ann: HALFYR: NZX: NZX 1H 2012 financial results

• Release Date: 20/08/12 11:53
• Summary: HALFYR: NZX: NZX 1H 2012 financial results
• Price Sensitive: No
• Download Document  4.3KB

					

NZX
20/08/2012 09:53
HALFYR

REL: 0953 HRS NZX Limited

HALFYR: NZX: NZX 1H 2012 financial results

NZX 1H 2012 financial results - current resilience, well positioned for
future growth

20 August 2012 - NZX's results for the first half of 2012 demonstrate the
resilience of the Information, Markets and Infrastructure system that has
enabled NZX to maintain a solid performance in key areas in the face of
ongoing global challenges.

Operating revenue reached $26.5 million, 1% higher than the prior
corresponding period ("PCP") total of $26.1 million. Expenses rose from $14.5
million to $16.9 million. This includes $2.0 million of costs associated with
the CEO transition, other non-recurring items and the Ralec litigation. In
addition, capitalisation of staff costs decreased by $1.1 million over PCP as
a number of projects moved from development to operation.

As a result, EBITDAF was down 18% to $9.57 million, and NPAT fell 28% to
$3.25 million.

"NZX has delivered a solid performance in challenging global conditions that
have seen contraction in revenues amongst other exchanges," said NZX CEO Tim
Bennett.

At the same time, NZX is gearing up for the next stage of growth into new and
diversified market offerings in late 2012 and into 2013.

Information

Strong growth in Agri information, at 8% over PCP, reflects the relevance of
quality data and commentary both to this sector and the broader economy.

Growth in securities information was 2%, with increases in subscription
revenues partially offset by declining terminal numbers.

"Our agricultural information business continues to grow, contrary to global
trends.  Subscription growth across our print and online information
offerings translates to sustainable revenue, especially as readership outside
the rural sector continues to climb," said NZX Head of Agri Tony Leggett.

Markets

Commodities trading was the standout performer in Markets, with trading
volumes on the Clear Grain Exchange more than doubling over the previous half
year's totals.

Trading in NZX Dairy Futures also more than doubled over the same period.

These excellent results were offset by the deferment of some planned IPO's
and a lower rate of secondary capital raisings than the previous year, which
resulted in an overall revenue decline of 2% on PCP.

Infrastructure

Whilst trading volumes were considerably higher than PCP, clearing revenues
were impacted by lower than expected trade values, resulting in an overall
uplift of 1% on PCP.

Trade value was down 7% on PCP in the first half of 2012. However, compared
with the peak in trade volumes and value seen in August 2011, the decline is
lower than on other exchanges in the Asia Pacific region.

Revenues in the Markets Operations businesses (Energy and the preparation for
Trading Amongst Farmers) declined 2% on PCP, reflecting a strong increase in
Energy revenues offset by lower revenues in other areas.

Expenses

Expenses grew by $2.5 million, or 17% over PCP. Excluding one-off costs and
the reduction in capitalisation, expenses declined by $0.3 million over the
prior period.

Dividend

The NZX Board has approved a dividend of 1.25 cents per share, fully imputed,
for the second quarter of 2012, which is consistent with the Board's stated
policy of an increase of 1 cent per share per year (prior to adjustment for
the May 2012 share split).

The NZX Board considers that a dividend at this level is appropriate given
the sound free cash flow generated, but noting the ongoing impact of the
global economic downturn. Equally, NZX can retain the flexibility to adjust
future payments upward should conditions improve.

The dividend record date will be 31 August 2012, with a payment date of 14
September 2012.

Summary and Outlook

Tighter than expected operating conditions, particularly in the second
quarter, are expected to continue into the second half of the year.

"Whilst the slower than expected growth on the listings side is primarily a
reflection of external factors, we are investing in expertise that will help
us lay the path for New Zealand companies to raise the capital they need to
invest in growth and, ultimately, in creation of jobs for New Zealanders,"
said Tim Bennett.

ENDS

Attachments:

o 1H 2012 Financial Statements
o Appendix 1
o Appendix 7
o 2012 First Half Results Presentation
End CA:00226165 For:NZX    Type:HALFYR     Time:2012-08-20 09:53:17