The New Zealand Exchange (NZX) has announced its financial results for the fiscal year 2024, revealing significant growth across its core business segments and a strong position in the market. The markets segment saw an 11.6% year-over-year increase in capital raised and listed, totaling $15.8 billion, with the total value traded reaching $41.5 billion, a 22.9% rise from the previous year and the third-highest annual result in the company's history.
In the Smart ETFs segment, previously known as Smartshares, funds under management (FUM) grew to $13.5 billion, marking a 22.6% increase from the previous half-year. This growth was supported by strategic initiatives, including a rebranding effort and a partnership with BlackRock's iShares, setting the stage for further expansion.
Wealth Technologies also reported impressive performance, ending the fiscal year with $16.2 billion in funds under administration, a 40.4% increase from fiscal year 2023. The platform added 12 new clients, increasing the total active client count to 32, and achieved external client cash flow positivity in December 2024.
Financially, NZX maintained a robust balance sheet with $28.8 million in cash and $127.0 million in net assets. The company declared a fully imputed final dividend of $0.031, bringing the total fiscal year 2024 dividend to $0.061. Looking ahead, NZX has provided an EBITDA guidance for 2025 ranging from $49.0 million to $54.0 million, reflecting confidence in its core segment performance. Valuation analyses suggest a share price range between $1.52 and $1.88, with a midpoint of $1.70.
NZX's strategic investments in technology, client expansion, and market diversification underscore its commitment to sustained growth and leadership in the financial services ecosystem. These developments highlight the company's ability to adapt and thrive in a dynamic market environment, offering valuable insights for business and technology leaders interested in the intersection of finance and innovation.
