NZX Limited Reports Mixed 1H25 Results with Strong Growth in Capital Markets and Wealth Technology
NZX Limited's first-half performance shows robust growth in capital raising and wealth technology despite macroeconomic headwinds, with the company maintaining its full-year EBITDA guidance of $49-54 million.
NZX Limited reported revenue of $61.7 million, operating profit of $11.6 million, and EBITDA of $24.1 million for the first half of 2025, falling slightly below analyst estimates primarily due to macroeconomic uncertainty. Stonegate Capital Partners expects a portion of this variance to be compensated in the second half as market conditions stabilize.
The company's markets division demonstrated significant strength, with capital raised and listed totaling $11.9 billion, representing an 87.8% year-over-year increase. This growth was substantially driven by the Fonterra Co-Op Group transfer valued at $4.8 billion. Total value traded increased 31.4% year-over-year to $21.8 billion, reflecting robust market activity. NZX continues to focus on building liquidity through initiatives such as index futures introduction, following self-match preventions and NZX Dark initiatives. Information services revenue reached $10.0 million, up from $9.3 million in the same period last year.
Smart, formerly known as Smartshares, ended the half with funds under management of $14.0 billion, a 3.8% increase from the second half of 2024. Growth was supported by positive net cash flows and market returns despite macroeconomic challenges. The company continued its rebranding efforts, with the new brand rolling out to remaining products over the coming year. Operational maturity improved through fund structure streamlining and system upgrades.
Wealth Technology reported funds under administration of $17.6 billion, an 8.6% increase from fiscal year 2024 end. This growth was driven by $1.3 billion in new client migrations and $0.1 billion in market returns. The platform expanded significantly, onboarding three new clients to reach 35 active clients total. NZX won four new clients during the period, with annual recurring revenue from external clients growing 32.9% year-over-year to $11.9 million, and pipeline potential ARR reaching $13.9 million.
NZX maintained a solid financial position with $14.2 million in cash and declared a fully imputed interim dividend of $0.03, unchanged from the previous year. Capital expenditures remain elevated due to continued investment in Smart and Wealth Technologies, particularly for client migration and system enhancements. The company reiterated its 2025 EBITDA guidance range of $49.0 million to $54.0 million, reflecting strong performance across core segments supported by sound fundamentals and a stabilizing macroeconomic environment.