NZX’s firsthalf profit falls as company restructures

AUCKLAND: Market operator NZX’s firsthalf profit is down nearly 45% as the company continues to make changes to improve the performance of the business.

The company made a net profit of $4.4 million in the six months to June, compared with $8 million the year earlier, reflecting changes from discontinued businesses and increased costs.

The underlying profit was down slightly at $13.2 million.

Total revenue rose 2% to $33.4 million, driven by strong growth in trading and clearing fees and funds management revenues.

However, income from its issuance, listing and consulting operations dropped by more than 4%.

Costs from continuing operations rose 7.3% as a result of increases in marketing, cyber security, the dairy derivatives market, oneoff staff costs, and investment to grow its funds under management.

Chief executive Mark Peterson said the company had materially advanced the business in the first six months of a fiveyear strategic plan outlined in November.

‘‘We are pleased with progress being made across the key strategic areas fundamental to our future growth, and remain on track to deliver within the earnings guidance range provided in February 2018.’’

He said the company’s underlying profit was tracking to fullyear guidance of

$28 million$31 million.