18 Aug 2010

NZX expects modest capital market growth

10:20 am on 18 August 2010

The stock exchange operator hopes a modest bounce back in the capital markets will help it to grow profits in the coming year.

The NZX made $5.7 million in the six months to the end of June, down more than 90% on the same period the previous year, when the result was boosted by the sale of the its carbon business, and its stake in the Bond Exchange of South Africa.

Once those one-off items are excluded, the profit result was flat.

Operating revenue fell by 1% to almost $24 million and expenses fell by 2% to just over $15 million.

NZX chief executive Mark Weldon says revenues at its newly-acquired agri and energy business grew 7%, despite challenging global conditions, though the company has been affected by less activity in the capital markets.

Mr Weldon says terminal numbers have increased steadily since bottoming out in February, and he is expecting that to continue in the second half of the year.

The NZX declared an interim dividend of 3.75 cents a share.