New Zealand's stock exchange operator NZX Limited reported a strong financial performance in fiscal year 2024, showcasing significant growth and strategic developments across multiple business segments. The company's results highlight its resilience and strategic positioning in the financial markets.
The Markets segment demonstrated notable strength, with capital raised and listed totaling $15.8 billion, representing an 11.6% year-over-year increase. Total value traded reached $41.5 billion, marking a 22.9% rise compared to the previous fiscal year and ranking as the third-highest annual result in the company's history.
In the Smart ETFs segment, formerly known as Smartshares, the company achieved a 22.6% increase in Funds Under Management (FUM) to $13.5 billion. This growth was driven by positive net cash flows and market returns. Strategic initiatives, including a rebranding effort and an alliance with BlackRock's iShares, underscore the segment's potential for future expansion.
The Wealth Technologies segment exhibited even more impressive growth, with Funds Under Administration (FUA) increasing by 40.4% to $16.2 billion. The platform expanded its client base to 32 active clients and reached cash flow positivity for external client activities in December 2024. Annual Recurring Revenue from external clients grew 50% year-over-year, reaching $10.8 million.
Financially, NZX maintained a solid balance sheet, concluding the year with $28.8 million in cash and $127.0 million in net assets. The company declared a fully imputed final dividend of $.031, bringing the total fiscal year 2024 dividend to $.061.
Looking forward, NZX has provided 2025 EBITDA guidance ranging from $49.0 million to $54.0 million, reflecting confidence in continued strong performance. This projection is supported by the consistent growth in Smart ETFs and the recurring revenue nature of the Wealth Technologies segment.
Valuation analyses using multiple methodologies—Dividend Discount Model, Discounted Cash Flow, and Enterprise Value to EBITDA comparisons—suggest a potential share value range between $1.52 and $1.88, with a midpoint of $1.70.
The company's strategic investments in technology, client migration, and system enhancements position NZX for potential continued growth and market leadership in the evolving financial technology landscape.
