NZX (NZX) H1 2024 earnings summary

Executive summary

• Operating earnings and revenue grew year-over-year, demonstrating resilience amid challenging macroeconomic conditions and market cycles.

• Net profit after tax surged 119% compared to H1-23, with adjusted/underlying net profit up 10.9%.

• Diversified business model and strategic growth in funds management and wealth technologies offset softness in equity market activity.

• Strategic investments in technology, product expansion, and integration of acquisitions continue to drive growth.

• Interim dividend of 3.0 cps declared, a 12% increase, payable 3 October 2024.

Financial highlights

• Operating revenue rose 7.3% to $57.9m in H1-24 versus H1-23, driven by Smartshares and NZX Wealth Technologies.

• Operating earnings (EBITDA, excl. one-offs) up 11.5% to $22.9m; EBIT rose 74% to $20.7m.

• Net profit after tax reached $15.3m, up 119% year-over-year, including a $7.3m fair value gain on Quay Street earnout provision.

• Funds under management grew 8.2% since Dec 2023 to $11.88b; funds under administration up 23.2% to $14.21b.

• Dairy derivatives lots traded increased 23.6% year-over-year; value traded in secondary markets fell 8%.

Outlook and guidance

• FY24 operating earnings (EBITDA, excl. one-offs) expected in the $40.0m–$44.5m range, tracking toward the upper end.

• Guidance assumes no further material macroeconomic declines or significant one-off expenses.

• NZXWT aims to be cashflow positive by end of 2024; Smartshares expects further efficiency gains.

• Dividend policy targets 80–110% of adjusted net profit after tax, subject to capital requirements.