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NZX reports higher third quarter profit

Sharemarket operator NZX Ltd reported a 33% rise in third quarter underlying earnings on almost flat revenue.Earnings before interest, tax, depreciation, amortisation and financial instruments of $5.25 million in the three months to September 30 compared

NZPA
Wed, 27 Oct 2010

Sharemarket operator NZX Ltd reported a 33% rise in third quarter underlying earnings on almost flat revenue.

Earnings before interest, tax, depreciation, amortisation and financial instruments of $5.25 million in the three months to September 30 compared to $3.96 million in the previous quarter.

Operating revenue was $12.14m in the third quarter, little changed from $12.08m in the second quarter. NZX said revenue in the month of September was up 18 percent on the average of July and August. Revenue from issuer services in the quarter rose 4 percent to $2.45m.

NZX said that in September the capitalisation of staff time for work on its clearing house project ceased and staff costs moved fully onto the profit and loss statement.

NZX has shifted from a period of infrastructure development to a period of "making the base work harder".

NZX's clearing house and derivatives market became operational businesses during the quarter and it also signed a memorandum of understanding (MOU) with the Reserve Bank of New Zealand, which cemented the relationship between the two entities with regard to clearing and settlement in New Zealand. Of particular importance is the provision of emergency liquidity agreed in the MOU, NZX said.

NZX said that revenue should grow by the mid-single digits in the fourth quarter compared to the third quarter and normalised costs should continue to fall by an additional 2 to 3 percent.

NZPA
Wed, 27 Oct 2010
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NZX reports higher third quarter profit
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