New Zealand Professional Investment Services Firm

Forsyth Barr

We are proud to be a New Zealand owned firm, with 21 offices throughout the country and over 300 employees. We assist personal, institutional and corporate clients providing a full range of investment services.

Forsyth Barr is a foundation New Zealand Exchange firm (NZX) and accredited market participant. We have been confirmed by the Financial Markets Authority as a Qualifying Financial Entity (QFE).

Research is the cornerstone of our advice. We have one of New Zealand's leading teams of analysts. Our global affiliations ensure comprehensive research coverage of all major investment markets.

New Zealand Professional Investment Services Firm, Forsyth Barr

Equity Bottom-Up

<h2>NZX (NZX.NZ) 3Q21 trading update - no surprises</h2>
NZX’s 3Q21 reported quarterly operating revenue split detailed few surprises with softer operating statistics in July offset by stronger September and August numbers.
Highlights in the period included a strong performance by the Wealth Technologies division which saw revenue up +92.5% against 3Q20 and Funds Management revenue which continued it’s a strong growth up +47.7% on the prior period.
Every division saw positive revenue growth on the prior year despite a normalisation of total value traded in the Secondary Markets division.
Key points
<ul>
<li>Within the Issuer Relationships division primary listing fees were up +83% driven by primary debt listings of NZ$1.2bn in the quarter. This was supported by secondary equity capital raised of NZ$667m.</li>
<li>Secondary Markets operating metrics for the quarter saw a strong quarter of trading (NZ$13.7bn vs NZ$12.6bn in 3Q20) which was reflected in an increase of +6.7% in revenue for the division.&nbsp;</li>
<li>Data &amp; Insights revenue growth remains solid at +15% vs 3Q20, driven by elevated terminal and licence numbers</li>
<li>Funds Under Management saw impressive revenue growth of +48%, driven by FUM growth of 32%.&nbsp;</li>
<li>The Wealth Technologies division reported revenue growth of 92.5% as it looks to continue the onboarding of clients across the year.&nbsp;&nbsp;</li>
</ul>
Outlook
Guidance for FY21 EBITDA remains unchanged from the updated range of NZ$32.0m to NZ$35.5m (Forsyth Barr NZ$34.1m)

NZX (NZX.NZ) 3Q21 trading update - no surprises
NZX’s 3Q21 reported quarterly operating revenue split detailed few surprises with softer operating statistics in July offset by stronger September and August numbers.
Highlights in the period included a strong performance by the Wealth Technologies division which saw revenue up +92.5% against 3Q20 and Funds Management revenue which continued it’s a strong growth up +47.7% on the prior period.
Every division saw positive revenue growth on the prior year despite a normalisation of total value traded in the Secondary Markets division.
Key points

Within the Issuer Relationships division primary listing fees were up +83% driven by primary debt listings of NZ$1.2bn in the quarter. This was supported by secondary equity capital raised of NZ$667m.
Secondary Markets operating metrics for the quarter saw a strong quarter of trading (NZ$13.7bn vs NZ$12.6bn in 3Q20) which was reflected in an increase of +6.7% in revenue for the division.&nbsp;
Data &amp; Insights revenue growth remains solid at +15% vs 3Q20, driven by elevated terminal and licence numbers
Funds Under Management saw impressive revenue growth of +48%, driven by FUM growth of 32%.&nbsp;
The Wealth Technologies division reported revenue growth of 92.5% as it looks to continue the onboarding of clients across the year.&nbsp;&nbsp;

Outlook
Guidance for FY21 EBITDA remains unchanged from the updated range of NZ$32.0m to NZ$35.5m (Forsyth Barr NZ$34.1m)

NZX

NZX 3Q21 Trading Update