NZX releases third quarter results

15 October 2003 – New Zealand Exchange Limited (NZX) is pleased to announce its operating result for the quarter ended 30 September 2003, and the nine months ended 30 September 2003.

The result for the September quarter is a profit before tax of $1,387k (after tax $929k). This takes the nine month profit before tax to $2,262k (after tax $1,515k). The result for the quarter reflects positive trading activity and the introduction of new pricing which took effect on 1 July 2003.

Revenue of $3,612k was generated, representing 40.3% of the total revenue earned in the nine months to September. The increased revenue is a direct reflection of the number of trades coupled with the new pricing structure introduced on 1 July 2003.

Excluding interest earned of $312k for the quarter (YTD $596k), 39.5% of the total revenue for the nine months was earned in the three months ended September 2003. The additional interest is a direct reflection of the increased cash holding since the IPO in June 2003. NZX continues to explore opportunities that will leverage off its existing technology and assets as outlined in the June 2003 Investment Statement and Prospectus.

The volume of equity trades in the September quarter increased 16.8% over the same quarter last year to 148,905. The September 2003 month volumes traded were 16.2% above the comparative month last year. The value in equities traded in the quarter ended September 2003 decreased 6.9% to $5,375m on the same quarter in 2002. This reduction was due to the sell down by Verizon Communications Inc. of a large portion of their holding in Telecom Corporation New Zealand Limited in September 2002.

Expenditure for the quarter of $2,240k represents 32.5% of the total nine months’ expenditure. Employee and related costs have remained consistent with the previous two quarters. All other expenditure for the quarter has been maintained at a consistent level except for Travel & Entertainment and Marketing where this quarter’s expenditure is 26% and 21% of their total expenditure respectively.

NZX is pleased with the result for the quarter and results to date are ahead of assumptions used in the comparative period for the cash flow projection in the preparation of the June 2003 Investment Statement and Prospectus.

These financial results are for New Zealand Exchange Limited only and do not include the consolidation of NZX Funds Management Limited. There is nil impact on profitability as a result of not consolidating this subsidiary. The results are unaudited.

While some information for the same period last year is comparable, other aspect in particular financial figures, are not always available due to changes made to reporting structures, which now more closely reflect business lines and the introduction of a new financial package.

Full financials can be found on the NZX website at www.nzx.com/aboutus/investor/financial.

Key Financial Information for the Quarter:

Key Operating Performance for the Quarter:

• All price changes for listed issuers and broker firms have now been introduced and have impacted on the revenues for the quarter.
• New NZSX listings in the quarter included Postie Plus Group Limited, URBUS Properties Limited and Freightways Limited.
• Three companies delisted in the quarter.
• There was a significant increase in the number of new allotments in the quarter generating $201k in fees.
• Equities trading for the quarter were extremely strong recording 148,905 trades. This compares to 127,453 in the corresponding period last year. An increase of 16.8%.
• Total equity trades for the quarter represented 35.9% of total trades for the nine months ended September 2003. This is a 5.6% increase over the corresponding nine month period last year.

For more information, please contact:

Bridgit Vivian
New Zealand Exchange Limited
04-496-2874
bridgit.vivian@nzx.com