Radio New Zealand - Te Reo Irirangi o Aotearoa

NZX profit slumps 28%

Updated at 4:35 am on 21 August 2012

The NZX is expecting another six months of subdued activity due to ongoing tough global trading conditions.

The stock exchange operator's profit fell 28% to $3.25 million in the six months to June, compared with the same period last year.

Chief executive Tim Bennett says most exchanges are experiencing a sharp downturn in activity and the NZX has had a solid performance.

"Half-on-half or revenues were up slightly - I think that's a particularly good result in the blobal environment," Mr Bennett says.

"We have seen other exchanges' revenues drop sharply in securities trading over the past six to 12 months as capital markets activity declines".

During the June half-year, revenue rose 1% to $26.5 million, but costs jumped 14% to $16.9 million due to payments following the departure of former chief executive Mark Weldon and a legal dispute with the former owners of its Australian grain exchange.

NZX is expecting a relatively subdued second half of the year.

Its share price dropped 4 cents to $1.10 each on Monday.

Copyright © 2012, Radio New Zealand