Ann: QUARTER: NZX: NZX Q1 2015 Revenues and Operating Metrics

• Release Date: 01/05/15 08:31
• Summary: QUARTER: NZX: NZX Q1 2015 Revenues and Operating Metrics
• Price Sensitive: No
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					NZX
01/05/2015 08:31
QUARTER
PRICE SENSITIVE
REL: 0831 HRS NZX Limited

QUARTER: NZX: NZX Q1 2015 Revenues and Operating Metrics

NZX's Q1 2015 revenue report released today shows total group revenues of
$16.4 million, up 9.1% compared to Q1 2014, driven mainly by NZX's recently
expanded funds management business.

NZX's funds management business contributed an additional $1.75 million
compared to Q1 2014. Of this growth, $1.5 million is attributable to the
addition of the SuperLife business (acquired effective 1 January 2015).
NZX's Smartshares business also saw pleasing growth with funds under
management up 17.3%, boosted by the launch of two new Australian equity
Exchange Traded Funds (ETFs) in Q4 2014. Smartshares also launched an
additional three new funds in April 2015. The successful launch of these new
ETFs has been enabled by the SuperLife acquisition, with further ETFs to be
added to the Smartshares product portfolio in coming months.

In the cash markets, trading volumes and values were up 1.2% and 12.7% on Q1
2014, contributing to a 6.6% growth in trading revenues and 14.4% growth in
clearing revenues.

NZX's Agri business felt the effects of a low dairy price and summer drought
conditions in a number of regions, with revenues down 11.7% on Q1 2014. In
contrast, dairy derivatives continue their rapid growth, with lots traded up
196.5% on Q1 2014 and revenue growth of 119.0%.

NZX's Australian grain trading business, Clear Grain Exchange traded 149,544
tonnes in the quarter, down 49.4% on Q1 2014, a consequence of a smaller
harvest and high grain prices at the start of the season, resulting in most
of the selling activity being completed in Q4 2014.

NZX's energy market operations business added an additional three contracts
during Q1 2015, two smaller information supply contracts, and the Extended
Reserve Manager role, which the Electricity Authority selected NZX as the
preferred supplier for. This is a new role in the electricity industry and is
expected to result in meaningful development revenue through to mid-2016, as
well as a relatively small ongoing operational revenue stream.

Revenue by business line

Capital markets - Capital markets revenue was up 3.7% on Q1 2014 to $8.6
million, with growth driven by increases in trading activity, and the
increase in annual listing fee revenue resulting from new listings in 2014.
Securities information revenue was up 3.1%, despite terminal numbers
remaining relatively flat on Q1 2014, due to an increase in licence fees and
other miscellaneous data revenues.

Soft commodities - Increased dairy derivatives revenue from continuing rapid
growth in derivatives trading volumes was more than offset by the significant
reduction in revenue from trading on the Clear Grain Exchange, with resulting
total revenue of $0.4 million, 43% down on Q1 2014.

Agricultural information - Revenue was down 11.7% to $2.6 million. This was
primarily the result of reduced advertising volumes in print publications,
with only 487 advertising page equivalents booked during the quarter (down
20.4% on Q1 2014), a result of reduced confidence in the sector due to the
fall in dairy pay out and drought conditions in several regions.

Funds management - Funds management revenue was up 315% to $2.3 million due
to the acquisition of SuperLife and growth in funds under management.
SuperLife's KiwiSaver business saw a 28% increase in funds under management
in Q1 2015 compared to Q1 2014. The Smartshares ETF business also saw an
increase in funds under management of 17.3%.

Market operations - Market operations revenue dropped 1.7% to $2.59 million
due to slightly reduced development activity compared to Q1 2014.

NZX Regulation Metrics commentary

NZX also released its Q1 2015 regulation metrics today. These show that NZX
Regulation commenced 38 investigations during the quarter in relation to
Issuers, in addition to the 10 investigations that were ongoing at the
beginning of the quarter. There were 21 investigations into participants
commenced during Q1 2015, in addition to the three investigations that were
ongoing at the beginning of the quarter. Five investigations relating to
issuers and participants remained ongoing at the end of the quarter.

For further information please contact:
Investors
Bevan Miller
Chief Financial Officer
M: 021 276 7359
04 498 2271
E: [email protected]

Media:
Kate McLaughlin
Corporate Communications
M: 027 533 4529
T: 09 309 3654 T:
E: [email protected]
End CA:00263766 For:NZX    Type:QUARTER    Time:2015-05-01 08:31:03