Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


NZX expects modest growth, smaller listings ahead

NZX expects modest growth, smaller listings ahead

April 9 (BusinessDesk) – New Zealand’s stock exchange operator, NZX, is expecting to reap moderate growth from recent investments over the next two to three years, and to seek greater involvement in passive managed funds, where the local market has lagged Australia and the US.

Slides prepared for an NZX investor day presentation give no guidance on future earnings, but say “the focus remains on organic growth” and small acquisitions, particularly for new streams of saleable agricultural data.

NZX has “two to three years to realise the upside” of recent investments, says slides prepared for chief executive Tim Bennett, after a period of investment in new business lines that have delivered 7 percent compound annual growth in revenues since 2009. CAGR of 14 percent was achieved between 2003 and 2008, during the early years of previous chief executive Mark Weldon’s tenure.

The presentation shows the largest single source of activity in 2013 was listing fees and securities data, bringing in $20.2 million to provide 32.3 percent of total revenue, while capital-raising, trading and clearing was worth $14.7 million and represented 23.4 percent of activity.

The last year was characterised by two partial privatisations of state-owned electricity companies, MightyRiverPower and Meridian Energy, and a selldown to 51 percent government ownership of already listed Air New Zealand.

Over the next two to three years, trading, clearing and data revenues are expected to grow between 5 and 10 percent annually with no new investment required, while funds under management are projected to grow by between 10 and 15 percent annually and may attract “limited acquisition” spend.

“IPO activity is expected to be focused on smaller to medium size listings compared to 2013,” the presentation says, with a relaunched small cap board “not having an immediate impact on revenues” but creating a pipeline for future main board listings.

NZX expects trading and clearing volumes to remain “robust” and the exchange will launch two new funds management products in 2014 “to drive growth in funds management beyond 2013 levels.”

NZX equity derivative values were anticipated to grow from 2.5% to 20% of the cash market over five years, which was still “well below comparable markets.”

On the capital expenditure front, NZX says it is budgeting $2 million to $3 million to maintain business as usual, with potential for a clearing system upgrade in 2015/16 and a trading system upgrade in 2019, but that “no other multi-million dollar projects are currently contemplated.”

Growth in expenses, which topped $37.9 million in 2013, compared with $29.2 million in 2010, would slow as the current investment cycle ended.

NZX shares were up 0.8 percent in trading today, at $1.24.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Scoop Business: Alex Swney Pleads Guilty To $2.5M Fraud Charge

Alex Swney, former chief executive of the Auckland city centre business association Heart of the City, has pleaded guilty to dishonestly using documents to obtain $2.5 million. More>>

ALSO:

Petrol Burns Prices: Second Consecutive Quarterly Fall For CPI

The consumers price index (CPI) fell 0.3 percent in the March 2015 quarter, following a 0.2 percent fall in the December 2014 quarter, Statistics New Zealand said today. The last time the CPI showed two consecutive quarterly falls was in the December 1998 and March 1999 quarters. More>>

ALSO:

Scoop Business: NZ Broadcasters Launch Battle Against Global Mode ISPs

New Zealand broadcasters have confirmed they’ve launched legal proceedings against internet service providers who give customers’ access to “global mode”, which allows customers access to offshore online content, claiming it breaches the local content providers’ copyright. More>>

ALSO:

Sanford: Closure Of Christchurch Mussel Processing Plant Confirmed

The decision comes after a period of consultation with the 232 staff employed at the Riccarton site, who were told on 9 April that Sanford was considering the future of mussel processing in Christchurch. Recent weather patterns had impacted on natural spat (offspring) supply... More>>

ALSO:

Price Of Cheese: Dairy Product Prices Fall To The Lowest This Year

Dairy product prices fell in the latest GlobalDairyTrade auction, hitting the lowest level in the 2015 auctions so far, as prices for milk powder and butter slid amid concern about the outlook for commodities. More>>

ALSO:

Houston, We Have An Air Route: Air New Zealand To Fly Direct To The Heart Of Texas

Air New Zealand will fly its completely refitted Boeing 777-200 aircraft between Auckland and Houston up to five times a week opening up the state of Texas as well as popular nearby tourist states such as Louisiana and Florida. More>>

ALSO:

Scoop Business: Reserve Bank’s Spencer Calls On Govt To Rethink Housing Tax

The Reserve Bank has urged the government to take another look at a capital gains tax on investment in housing, allow increased high-density development and cut red tape for planning consents to address an over-heated Auckland property market. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news