NZX (NZX) H2 2024 earnings summary

Executive summary

• 2024 saw strong financial performance with operating earnings (excluding integration/restructuring costs) of NZD 48.5 million, up 21%, and reported NPAT of NZD 25.5 million, up 88.1% year-over-year.

• Diversified growth across market operations, funds management, and wealth technologies, with Smart and Wealth Technologies delivering significant client and revenue growth.

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

• Cost discipline improved operating margins to 40.2%.

• Strategic focus remains on scaling capital markets, Smart, and Wealth Technologies.

Financial highlights

• Revenue rose to NZD 120.8 million, up 11.4% year-over-year, driven by capital markets (+3.3%), Smart (+19.1%), and WealthTech (+42.7%).

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

• Net profit after tax (NPAT) reached NZD 25.5 million, up 88.1% year-over-year; EPS rose 85.7% to 7.8 cps.

• Total FY24 dividends declared at 6.1 cps, fully imputed; final dividend of NZD 0.031 per share declared, with DRP suspended.

• Operating margin improved from 37% to 40.2%.

Outlook and guidance

• FY25 operating earnings (EBITDA, excl. integration costs) forecasted at NZD 49–54 million, reflecting continued growth in Smart and WealthTech.

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

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

• 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.