“With the growth activities NZX has underway across the business, NZX today has reaffirmed the business should deliver operating earnings, excluding integration and restructuring costs, that will be comfortably in the range of $40 million to $44.5 million,” McMahon said.
Operating earnings, excluding acquisition and integration costs, were $40.1 million in calendar 2023, up 9.6% on the previous year.
“We are off to a good start in 2024. Our markets business is performing in line with our key metrics. Soft market activity over quarter one 2024 has been offset by cost management and one-off revenue from an index audit,” McMahon said.
First quarter revenue was $28.8 million and first quarter earnings were $11.4 million – both figures include a one-off audit fee of about $0.9 million, he said.
“In our funds management business we are seeing the benefits of funds under management (FUM) growth and synergies of the QuayStreet and [ASB] Super Master Trust acquisitions.”
FUM grew 33% to $11 billion in 2023.
“Wealth Tech continues to track against forecast increase in annual recurring revenue as new clients transition onto the platform,” McMahon said.
NZX is expecting the Wealth Technologies arm to become cash flow break even in the current financial year.
Earlier, chief executive Mark Peterson told the meeting Smartshares remains focused on achieving between $15 billion and $20 billion in FUM by the end of 2027.
“NZX Wealth Technologies' funds under administration has grown from $2 billion in 2018 to $11.5 billion at the end of 2023,” Peterson said.
“And, as of the end of March this year, that figure now stands at $13.8 billion,” he said.
“We have more confidence than ever in achieving our traget funds under administration levels.”
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