NZX boosts profit by 280%, forecasts increased dividend
Stock exchange operator New Zealand Exchange is expecting a strong year for equity listings to complement non-core business growth highlighted by a 166% increase in earnings for the year to December.The company today posted net profit of $38.71 million fo
Duncan Bridgeman
Mon, 01 Mar 2010
Stock exchange operator New Zealand Exchange is expecting a strong year for equity listings to complement non-core business growth highlighted by a 166% increase in earnings for the year to December.
The company today posted net profit of $38.71 million for its 2009 financial year, up 280% on 2008, driven largely by gains on the sale of its carbon registry business and the bond Exchange of South Africa.
NZX wrote down the value of its TZ1 carbon registry by $19.9 million after climate change talks in Copenhagen stalled last year.
Revenue was up 33%to $42.81 million, driven largely by existing agricultural data and acquisitions of businesses in the energy and agricultural area over the period.
Operating expenditure climbed 89% to $25.25 million reflecting the larger shape of the business, integration costs and transaction related costs.
Earnings before interest, tax, depreciation and amortisation of $45.96 million, 166% higher but after financial instruments was down 6% at $17.56.
Earnings a share jumped 238% to 34.98c.
Chief executive Mark Weldon said the strong increase in bottom line profit reflected a concentrated focus on capital realisation.
“NZX’s 2009 goals were based on a view that 2009 would be a difficult trading year, and that many of the capital market changes over this period would be fundamental, not merely cyclical. NZX also believed that 2009 would present unique opportunities for a strongly capitalised company with the ability to move quickly,” he said.
“After achieving the 2009 priorities, we believe that in 2010 and beyond our business is poised to benefit from improved macro and local conditions and a business model that will see it continue to deliver strong financial performance over the next five years as a New Zealand listed company,” Mr Weldon said.
The NZX will pay a dividend on post share split increased capital, of 6.5c per share, fully imputed, for the year ending 31 December 2009.
NZX intends to increase the annual dividend by a minimum of 1c a share annually for the next five years.
Duncan Bridgeman
Mon, 01 Mar 2010
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