The NZX Group Q3 2012 revenue release shows moderate revenue growth at 1% above the previous corresponding period (PCP).
Expenses are tracking in line with the outlook provided at the 2012 Half Year Result.
Healthy gains in the Infrastructure businesses were offset in part by subdued activity in the Markets businesses.
“Q3 has seen a lot of work behind the scenes in preparation for Fonterra’s Trading Amongst Farmers, the new X-stream trading system and online offerings to meet growing demand in the Agri business. All these initiatives are set to go live during Q4,” said NZX CEO Tim Bennett.
“In addition, work has commenced on new initiatives to build on New Zealand’s leading position in the dairy commodities space,” said Bennett.
“Whilst revenue growth has tapered off slightly during this period, we have continued to invest in technology and people to strengthen NZX’s position in our core markets businesses and to drive future growth,” said Bennett.
Specific business areas
Information
Securities Information - Primary and Other Data Distributor numbers have remained relatively stable over PCP despite international markets volatility. The ongoing strength of the New Zealand dollar versus the US dollar - the transactional currency for this market - continues to influence revenue levels.
Agri Information - Gains made earlier in the year have been sustained throughout a traditionally soft seasonal period. Further gains are expected in Q4 contributing to a strong annual revenue growth.
Markets
Listings - Activity remained subdued throughout the quarter. IPO expectations indicate a lift in listings in Q4 and into 2013.
Securities Trading - Significant growth in trading volumes in the latter part of 2011 has been sustained in 2012, with an overall YTD revenue lift of 20.7% over 2011. Contributors were a 4.1% increase in trade volumes and a 3.3% lift in trade values.
Dairy Futures trading showed sustained improvement over PCP, and work has commenced on new initiatives to build on the success to date.
Commodities Trading - Grain trading was softer than PCP due to lower volumes of grain being carried in to the new season. YTD revenue improvement was 72.3%, and momentum is expected to build as the harvest season commences toward Year End.
Infrastructure
Securities Clearing - This business line continues to perform well, with stock lending continuing to show strong growth. A total of $554.2 million was lent during Q3, a 90% increase on PCP.
Market Operations - Contracted services continue to provide stable revenues in this business line. Work continued on the Fonterra Shareholder Market that is expected to be launched in Q4.
ENDS
Attachments:
NZX Q3 Shareholder Metrics