Ann: QUARTER: NZX: Market activity drives NZX Q1

• Release Date: 03/05/13 11:19
• Summary: QUARTER: NZX: Market activity drives NZX Q1 revenue growth
• Price Sensitive: No
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NZX
03/05/2013 09:19
QUARTER

REL: 0919 HRS NZX Limited

QUARTER: NZX: Market activity drives NZX Q1 revenue growth

NZX's Q1 2013 revenue report released today shows total Group revenue of
$14.1 million, up 4.3% on the previous corresponding period.  Revenue growth
resulted from strength in securities trading and clearing revenue, coupled
with the Fonterra Shareholders' Market being fully operational and several
projects underway for the Electricity Authority.

The sharemarket continued to gather momentum in Q1 2013, with trading volumes
well up on the equivalent period in 2012. This positively impacted both
securities trading and clearing revenue, which were up 30% and 23%
respectively.

Market operations revenue was also a contributor to growth, with revenues up
27%. The Fonterra Shareholders' Market continues to operate smoothly
following its successful launch in the second half of 2012, and Q1 2013 was
also a busy period for the Group's Energy business.

Partially offsetting these areas of significant revenue growth, information
revenues were 8% down on the prior period. Securities data revenues continued
to trend downward, impacted by continued consolidation in capital markets
businesses globally and a higher NZD/USD exchange rate than Q1 2012.
Agricultural data revenue was impacted by a pull back in rural advertising
spend as a result of drought conditions.

Commodity trading revenues from the Clear Grain Exchange business were 33%
down on the prior year due to a smaller grain harvest in 2012/13, together
with the fact the majority of the crop was sold early in the season due to
high grain prices at the end of 2012.

NZX CEO Tim Bennett commented: "Overall it has been a positive start to 2013,
with the equity markets in excellent health, which has positively impacted on
Q1 revenues. While one of the main features of Q2 will be the listing of
Mighty River Power, the remaining IPO pipeline remains promising. In light of
the existing positive market conditions, several companies are considering
coming to market in 2013.  Provided market conditions remain supportive, this
augers well for the second half of 2013.

"While our information and commodities trading businesses have been adversely
impacted by market factors in the first quarter of this year, the steady
growth in total group revenue highlights the benefits of the diversified
nature of NZX's business."

Revenue by business line

Securities Information - A 4.5% decline in real-time data terminal numbers
and a higher New Zealand dollar against the US dollar (with the majority of
this revenue being billed in US dollars) contributed to the 8% decrease in
securities information revenue compared to the prior year. The previously
anticipated stabilisation in terminal numbers and return to growth in
securities information revenue has yet to eventuate.

Agri information - Rural advertisers pulled back their spend in Q1 2013 due
to the drought conditions impacting the agricultural sector. This resulted in
the 8% drop in Agri information revenues for the quarter compared to the
prior year.

Listings - Listings revenue was up 4% in Q1 2013, with relatively limited
capital raising in the quarter, similar to the previous corresponding period.
 The Mighty River Power IPO will be a significant feature of Q2 and the IPO
pipeline beyond this remains strong.

Securities trading - Q1 2013 saw very strong trading volumes, continuing the
momentum from Q4 2012. The total number of trades was up 14% on the prior
comparable period, while the total value traded was up 54%, boosted by some
large block trades. As a result, securities trading income was up 30%.

Commodities trading - As signaled at NZX's 2012 full year results
announcement, the 2012/13 harvest was smaller than the prior year and high
prices at the start of the season meant that a significant proportion of the
crop was sold in Q4 2012. As a result, Q1 2013 tonnes traded were 44% down on
the prior year.  This was reflected in a 33% decline in commodities trading
revenue.

Securities clearing - Securities clearing revenues increased 23%, benefitting
from the increase in trading volumes and value in the market, as well as
increased depository and stock lending transactions.

Market operations - Market operations revenue increased 26% in Q1 2013,
benefitting from the Fonterra Shareholders' Market now being fully
operational as well as increased project activity within NZX's contracts with
the Electricity Authority.

Media contact:
Kate McLaughlin
Corporate Communications
M: 027 533 4529
E: [email protected]

Investor contact:
Bevan Miller
Chief Financial Officer
M: 021 276 7359
T: 04 498 2271
E: [email protected]
End CA:00235832 For:NZX    Type:QUARTER    Time:2013-05-03 09:19:02