Sharemarket operator NZX reported an operating profit of $24.6 million for the 12 months ended December, down on the previous year due to one-off costs associated with a large acquisition.
The operating profit was down 4.7% on the $25.8 million thanks almost entirely to a $2.6 million impairment charge on the Clear Grain Exchange purchase.
The reported profit was up 8.3% to $13.1 million and the total dividend was slightly improved at 6c per share.
NZX enjoyed an influx of listings in 2014, as 16 companies joined the bourse, adding $4.7 billion to the equity market capitalisation, which widened to the equivalent of 42% of New Zealand's gross domestic product, from 37.8% in 2013.
Costs rose 9.6% in 2014 to $40.6 million, led by a 62% jump in professional fees to $3.4 million, including $1 million for ongoing litigation with the vendors of the Clear Grain Exchange and $350,000 for the SuperLife acquisition.
NZX completed the purchase of SuperLife in January last year for $20 million upfront in cash and NZX shares, and a further $15 million provided SuperLife met targets for growth in funds under management.
SuperLife had $1.27 billion funds under management as at January 31, giving NZX a total of funds under management of $1.7 billion, once its existing Smartshares business was included.
NZX wanted to use SuperLife as a platform to accelerate growth of its Smartshares exchange traded funds (ETFs), and to benefit from growth in the New Zealand funds management sector seen at an annual 10% to 15% over the next 10 years, driven by KiwiSaver and increased household savings generally, Craigs Investment Partners broker Chris Timms said.
NZX chief executive Tim Bennett did not give guidance for 2015.
''While we will continue to make selective investments in 2015, our focus is on executing against the immediate opportunities we have in front of us.''
That included the launch of the new NXT market for start-ups and small-to-medium businesses, growth in its derivatives business and ETFs.
Mr Timms said also on the cards for 2015 was the tender for the electricity market operator contracts that NZX holds for the Electricity Authority, which expired in 2016. NZX had held the contracts since 2008.
The contract accounted for $11.6 million of market operations revenue and loss of the contract would have a significant and negative impact on earnings.
The authority had engaged NZX on significant project work last year, he said.
