NZX (NZX) H2 2024 earnings summary

Executive summary

• Achieved strong operating earnings (EBITDA) of $48.5m, up 21.0% year-over-year, with NPAT of $25.5m, up 88.1%, and underlying NPAT (excluding non-cash adjustments) at $18.3m, up 30.1%.

• Revenue rose 11.4% to $120.8m, driven by growth in Smart (funds management) and Wealth Technologies, with operating expenses up 5.8% to $72.2m.

• Strategic initiatives included new ETF launches, Smart rebrand, expanded dairy derivatives partnership, and operational leverage.

• Positive momentum in H2 2024 as market conditions improved, with increased trading activity and asset prices.

• Wealth Technologies and Smart delivered significant growth in funds under administration and management, with Wealth Technologies becoming cash flow positive from external clients.

Financial highlights

• Operating revenue increased to $120.8m (+11.4%), with operating margin improving to 40.2% (from 37.0%).

• Net profit after tax (NPAT) reached $25.5m (+88.1%); underlying NPAT (excluding QuayStreet earnout and energy contract write-down) was $18.3m (+30.1%).

• Total FY24 dividends declared at 6.1 cps, fully imputed, with DRP suspended for the final dividend.

• Net cash inflow from operations was $35.9m (+4.2%).

• Total shareholder return for 2024 was 42.6%.

Outlook and guidance

• FY25 operating earnings (EBITDA, excl. integration costs) forecasted at $49.0m–$54.0m, with continued growth in Smart and WealthTech and stable to slightly improved market activity.

• 2025 targets include $16.0b capital listed/raised, $41.5b value traded/cleared, and 10.8% FUM growth.

• Guidance assumes no major market corrections or significant one-off events.

• Cash flows expected to rise faster than NPAT due to Wealth Technologies amortisation profile.

• Strategy focuses on product expansion, leveraging partnerships, and operational efficiencies.