New Zealand Exchange (NZX) reported first-half 2026 operating earnings of NZD 27.3 million, an 8.8% increase from the same period last year, as the company highlighted growth in its Smart funds platform and continued dividend payments.
Net profit after tax rose 18% to NZD 9.8 million, while earnings per share increased 17% to NZD 0.03. Operating revenue climbed 13.3% to NZD 76.6 million, though operating expenses rose by NZD 6.8 million to NZD 49.3 million, trimming the operating margin to 35.6% from 37% a year earlier. Return on equity stood at 18%, with a price-to-earnings ratio of 20.78.
Smart funds under management surged 28.5% year-on-year to NZD 18 billion, driven by strong net cash flows of NZD 1.2 billion, including contributions from wholesale funds under Lifetime Asset Management. QuayStreet Asset Management’s funds under management grew 34.4% to NZD 2.8 billion, while Wealth Technologies’ funds under administration rose 20.1% to NZD 21.1 billion, with annual recurring revenue up 15% to NZD 13.7 million.
Capital market activity strengthened, with NZD 6 billion in capital listed and raised year-to-date, a 25.2% increase excluding Fonterra’s transfer to the NZX main board. New capital listings totaled NZD 2.5 billion, up 69.1% from H1 2025, while secondary capital raised reached NZD 3.6 billion, a 5.9% year-on-year rise. Cash market value traded declined marginally to NZD 21.2 billion, reflecting lower index rebalancing volumes.
Dairy derivatives trading fell 5.7% to 364,000 lots compared with H1 2025, though excluding two large structured auction trades from the prior year, volumes were up 5.3%. The company estimates a 0.25x multiplier in volumes for index futures or dairy/paper-to-physical ratios could generate approximately NZD 2.5 million in additional revenue.
NZX maintained its full-year 2026 operating earnings guidance between NZD 53 million and NZD 58.5 million. The interim dividend was increased 6.7% to NZD 0.032 per share, fully imputed, extending the company’s 22-year streak of dividend payments. The stock last traded up 1.35% at NZD 1.50, near its 52-week high of NZD 1.585.
Acting Chief Executive Graeme Law said the results reflected NZX’s resilience amid geopolitical tensions and a subdued economic cycle, emphasizing the need for deeper capital markets to support business growth and infrastructure investment. The company plans to refresh the SuperLife KiwiSaver brand under the Smart umbrella and launch the Smart app in Q4 2026, with an acquisition debt facility of NZD 15 million set to expire in February 2027.
