NZX (NZX) H2 2024 earnings summary

Executive summary

• Operating earnings (excluding integration/restructuring costs) rose 21% to $48.5 million, with NPAT up 88.1% to $25.5 million year-over-year, driven by diversified growth across market operations, funds management, and wealth technologies.

• Revenue increased 11.4% to $120.8 million, with all business units contributing and robust expansion in Smart and Wealth Technologies.

• Strategic initiatives included new ETF launches, Smart rebrand, expanded dairy derivatives partnership with SGX, and ongoing product innovation.

• Wealth Technologies and Smart delivered significant growth in funds under administration and management, with Wealth Technologies becoming cash flow positive from external clients in December 2024.

• Capital markets reforms and regulatory changes in New Zealand are expected to enhance market competitiveness and investment.

Financial highlights

• Operating revenue rose to $120.8 million (+11.4%), with operating margin improving to 40.2% (up from 37%).

• Expenses increased 5.8% to $72.2 million, mainly due to Smart's integration and IT costs.

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

• Total FY2024 dividend declared at 6.1 cents per share, fully imputed; final dividend of 3.1 cents per share to be paid in April 2025.

• Total shareholder return for 2024 was 42.6%.

Outlook and guidance

• FY2025 operating earnings (excluding integration costs) are guided at $49–$54 million, reflecting continued growth in Smart and Wealth Technologies and stable to slightly improved market activity.

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

• Cautious optimism for 2025, supported by regulatory changes and improving economic conditions.

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

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