14 Feb 2017

NZX full year profit drops 60%

1:01 pm on 14 February 2017

NZX's full year net profit has fallen sharply as its costs outpaced revenue growth.

NZX signage on a building in Auckland, 2015.

Photo: 123RF

The operator's full year net profit fell 61.5 percent to $9.2 million in the 12 months ending December, reflecting increased operating costs and one-time items, including the transition to meet new financal market rules, a repositioning of its agri-business and the resignation of the chief executive.

The long-running Ralec litigation concluded in 2016 and added significantly to costs, although NZX said all outstanding matters had been resolved and there would be no further costs.

Revenue rose 6 percent to $77.5m. Operating expenses rose more than 13 percent.

NZX interim chief executive Mark Peterson said the company had been positioning itself for growth over the last year.

"The team at NZX are now clearly focused on driving earnings growth out of our markets, funds services and agri businesses to better serve our customers, and deliver improved returns for our shareholders," he said.

The company expected to make an underlying profit in a range of $27m to $30m in 2017, compared with $22.5m in the year just ended.