NZX Limited Achieves Strong Financial Performance in FY24, Sets Optimistic 2025 Guidance
TL;DR
NZX reported revenue, adj EBITDA, and adj EPS surpassing estimates, showcasing strong performance and outperforming in all segments.
Stonegate Capital Partners updated their coverage on NZX, providing detailed financial results, strategic alliances, and future guidance for 2025.
NZX's growth in FUM, client count, and ARR from external clients demonstrate positive financial outcomes and potential for continued success, benefiting stakeholders and investors.
Smart ETFs rebranded, strategic alliances announced, and wealth platform expansion indicate innovation and growth opportunities in the financial market, making it an exciting time for investors and enthusiasts.
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New Zealand Stock Exchange (NZX Limited) reported robust financial performance for fiscal year 2024, demonstrating substantial growth across multiple business segments and setting a positive trajectory for 2025.
The company's markets segment raised $15.8 billion in capital, an 11.6% year-over-year increase, with total value traded reaching $41.5 billion—the third-highest annual result in the company's history. This growth was significantly driven by index rebalancing activities and strategic market developments.
NZX's Smart ETF segment experienced noteworthy expansion, with funds under management (FUM) increasing 22.6% to $13.5 billion. The segment's strategic rebranding and partnership with BlackRock's iShares indicate a forward-looking approach to investment product development.
The Wealth Technology division showed particularly strong performance, growing funds under administration by 40.4% to $16.2 billion. The platform added 12 new clients, bringing its total active client count to 32, and achieved external client cash flow positivity in December 2024.
Financially, the company maintained a solid balance sheet with $28.8 million in cash and $127.0 million in net assets. NZX declared a fully imputed final dividend of $0.031, bringing the total fiscal year dividend to $0.061.
Looking ahead, NZX has provided 2025 EBITDA guidance ranging from $49.0 million to $54.0 million, reflecting confidence in continued strong performance across core business segments. This projection is supported by consistent growth in funds under management and the recurring revenue nature of its wealth technology services.
Valuation analyses using multiple methodologies—including Dividend Discount Model, Discounted Cash Flow, and Enterprise Value/EBITDA comparisons—suggest a share value range between $1.52 and $1.88, with a midpoint of $1.70.
Curated from Reportable
