NZX has reported a 3 percent fall in first-quarter net profit from a year ago on a 46 percent increase in revenue.
The net profit after tax of $2.94 million in the first quarter was up 60 percent from the previous quarter.
The market operator and information vendor said the acquisition of energy and agri-businesses during the second half of 2009 reshaped NZX as a business and affected the comparison with the year-ago quarter.
Operating revenue of $11.85 million was up from $8.14 million in the same quarter last year and $11.68 million in the previous quarter. Operating expenditure rose 113 percent to $7.25 million in the quarter compared to a year ago, but fell 18 percent compared to the previous quarter.
NZX incurred one-off costs due to acquisitions and the establishment of new businesses. This would continue in the second quarter.
NZX said its underlying earnings before interest tax, depreciation, amortisation and financial instruments and operating margin strongly rebounded in the first quarter from the fourth quarter of last year. The margin rose to 38.80 percent from 24.67 percent in the previous quarter but was down from 58.09 percent in the same quarter last.
There were indications that the bottom had been reached in the market data business with market data terminal numbers rebounding for the first time in more than 15 months.
NZX said the key drivers of its performance in the future would be the move to manage all post-trade activity in securities via the regulated central counterparty model and clearing house and the initiation of a derivatives market.
NZX expected total listing revenue to increase in 2010 due to issuance activity and a change to the pricing structure for secondary listing fees introduced last year.
Energy markets would deliver high single digit revenue growth throughout 2010.
Commenting on its agri-business, which includes publications and a data provider, NZX said after a slow start to the year The New Zealand Farmers Weekly was now operating ahead of last year. The Dairy Exporter was now subscription only and initiatives in the next few months were expected to yield sizable increases in this circulation.
