NZX (NZX) H1 2024 earnings summary

Executive summary

• Operating earnings (EBITDA) rose 12% year-over-year to $22.4m in H1 2024, reflecting resilience amid challenging macroeconomic and market conditions.

• Net profit after tax surged 119% to $15.3m, with underlying NPAT (excluding a $7.3m Quay Street earnout adjustment) up 10.9% to $8.0m.

• Funds under management and administration saw strong growth, supporting future scale and operating leverage.

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

• Interim dividend of 3.0 cents per share declared, fully imputed, matching the prior year.

Financial highlights

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

• Operating expenses (excluding one-offs) increased 4.7% to $35.0m.

• Funds under management grew 11.3% year-over-year to $11.9b; 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%.

• EBIT rose 74% to $20.7m; net profit before tax up 84.1% to $18.9m.

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.

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

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