Ann: QUARTER: NZX: NZX Q3 2014 Revenues and Operating Metrics

• Release Date: 29/10/14 08:30
• Summary: QUARTER: NZX: NZX Q3 2014 Revenues and Operating Metrics
• Price Sensitive: No
• Download Document  5.62KB

					NZX
29/10/2014 08:30
QUARTER

REL: 0830 HRS NZX Limited

QUARTER: NZX: NZX Q3 2014 Revenues and Operating Metrics

NZX's Q3 2014 revenue report shows growth across all business sectors, with
total revenue for the quarter of $16.5 million, up 6.7% compared to Q3 2013.
Driving the growth was continued strong performance by NZX's capital markets
businesses and a busy period for contract development work in the company's
market operations business.

The beginning of the quarter saw a flurry of Initial Public Offerings (IPOs),
while activity in capital markets in general slowed towards the end of
quarter as the markets awaited the outcome of New Zealand's general election.
The level of new capital listed over the period was down 26.7% on Q3 2013
which included the listing of Z Energy.

Dairy derivatives continued to show strong growth, with record levels of lots
traded in July and August. Underlining the success of the development of the
dairy derivatives market, NZX's Dairy Futures won Best New Agricultural
Contract at the Futures & Options World Awards for Asia in September.

NZX's Agri information business this month launched two online forecasting
tools, developed in conjunction with Massey University, designed to provide
better insights into New Zealand milk production and farmgate milk prices.

At NZX's Australian business Clear Grain Exchange, a new forward contract was
launched ahead of the 2014/15 harvest to complement the existing spot market,
and an agreement was reached with Daily Grain to assist with the marketing of
Clear in West Australia.

Revenue by business line

Capital Markets - Capital markets revenue for the quarter was $9.5 million,
up 5.7% on the same period last year. This was largely driven by a 28.5%
increase in securities information revenue, a result of slightly increased
terminal numbers over the period (up 1.1% on September 2013) and
approximately $0.3m of one-off revenue resulting from various data audits.
Listings revenue decreased 6.0% over the quarter as a result of significantly
reduced secondary capital raisings compared to Q3 2013 and a lower total new
capital listed due to the Z Energy IPO in the prior comparable period.

While trade volumes increased 7.5% over the quarter, trade values remained
down on the prior period by 9.9%. Despite this, securities trading and
securities clearing revenues saw growth of 2.8% and 6.2% respectively, with
reduced clearing fees compensated for by higher levels of transactional-based
fees and increased stock lending activity.

Soft Commodities - Total dairy derivatives lots traded during the quarter
were up 119.7% on the prior period, driving a 92.9% increase in revenue. This
was offset by a reduction in commodities trading revenue, down 39.8%, the
result of a 34.3% reduction in tonnes traded, compounded by a high
NZ/Australia average exchange rate. Q3 is traditionally the low point in the
commodity trading cycle as prior harvest inventories are depleted and the new
harvest has not yet commenced.

Agricultural information - Agri information revenue saw a small increase to
$3.0 million (up 0.7%) despite a 3.0% reduction in advertising pages.
Subscription numbers were up 13.8% on 11,745. The Agri business continued to
expand its online presence with traffic to NZX Agri websites up 40.0% on Q3
2013, and revenues generated from online advertising growing steadily.

Funds Management - Funds management revenue grew by 14.8% to $0.7 million.
Funds under management were up 13.5%, a result of increased units on issue
(up 12.4%) including the launch of the NZ Core Equity fund in July 2014.

Market Operations - Market Operations revenue increased by 15.2%. This growth
comes from additional consulting revenue generated from major systems
projects for the Electricity Authority, partly offset by lost revenue from
the Gas Allocation Agent role which was included in the prior period.

NZX Regulation Metrics and general commentary

NZX released its third quarter 2014 regulation metrics today. These show NZX
Regulation commenced 31 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 7 investigations that remained ongoing
at the end of the quarter.

There were 25 investigations in relation to participants that commenced
during this quarter, with 8 remaining ongoing at quarter end.

Other progress during the period:

- NZX received approval from the Financial Markets Authority for the
registration and rules of the NXT market, a new NZX market designed for small
and mid-sized business. The approval is another significant milestone in
NZX's progress towards the launch of NXT, and provides potential NXT listed
companies with certainty on the listing requirements. The timing of NXT's
launch will depend on companies being ready to list.

- In August, NZX consulted on proposed amendments to the guidance notes on
continuous disclosure and trading halts and suspensions and on its proposals
to update or withdraw other guidance notes concerning the Listing Rules. NZX
is considering submissions received with a view to finalising the updated
continuous disclosure guidance note in Q4.

- Nine scheduled participant inspections were undertaken during the period.

- The NZ Markets Disciplinary Tribunal issued five determinations on
enforcement matters referred to it by NZX Regulation.

For further information please contact:

Media Contact
Kate McLaughlin
Corporate Communications
M: 027 533 4529
T: 09 309 3654
E: [email protected]

Investor Contact
Bevan Miller
Chief Financial Officer
M: 021 276 7359
T: 04 498 2271
E: [email protected]
End CA:00256913 For:NZX    Type:QUARTER    Time:2014-10-29 08:30:06