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NZX LIMITED (NZX:NZ)

THREATS (1) COSTS STILL NOT DECLINING ■

As we review the latest 1H 2018 results*, we are disappointed in Management’s lack of efforts in cost control.

Compared to 1H 2017, operating earnings from continuing operations declined by 5.2%. This is the direct result of a 7.3% increase in total expenses from continuing operations. Notably, expenses from Corporate increased by 15.6%.

Shareholders have been patient with Management since the release of NZX’s five-year strategic plan to allow time to illustrate their seriousness in controlling/managing cost/s. Unfortunately, the results have proved less than conclusive and points to the need for more focus on costs across the business.

This underperformance early on undermines Management’s credibility to deliver on the five-year strategic plan.

S S

MC

U

S

NZ$9M

Business Unit Expenses (NZ$ M)

NZ$8M NZ$7M NZ$6M NZ$5M NZ$4M NZ$3M NZ$2M NZ$1M NZ$0M Issuer Relationships

Secondary Markets

Data & Insights 1H 2017

2H 2017

Funds Management

Wealth Technologies

Corporate

1H 2018

* NZX Interim Report 2018

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Profile for Richard

Elevation Capital Research Annual 2018  

Elevation Capital Research Annual 2018