ASX Reports Strong First Half with Record Revenue and Growth Momentum
Australian Securities Exchange (ASX) announced exceptional financial performance for the first half of its fiscal year, ending December 31, 2023.
Key Highlights:
* Record Revenue: Operating revenue reached an all-time high, driven by rising demand for derivatives market data, increased listing fees, and higher cash market trading.
* Increased Listings and Capital: The exchange saw a surge in new listings, contributing to a higher total quoted capital.
* Strong Profit Growth: Underlying net profit jumped by 10.1% to A$253.7 million, exceeding market expectations.
* Interim Dividend: ASX declared an interim dividend of A$1.112 per share.
Market Factors:
Enhanced volatility in global markets due to interest rate expectations and geopolitical events fostered increased trading in the Australian market.
Initial Public Offerings: Initial public offerings in Australia surged to $2.01 billion in net proceeds, the highest since 2021.
Regulatory Challenges and CHESS Replacement:
ASX acknowledged scrutiny over its delayed CHESS replacement project. However, the exchange operator announced plans for the first industry test of the new CHESS clearing services.
Despite concerns about costs related to the failed CHESS replacement, ASX reported flat total expenses of A$220.3 million for the first half. It also reiterated its expense growth guidance between 6% and 9% for the current financial year.
"ASX's cost growth stabilization is a positive sign, especially considering the challenges faced by the clearing system replacement project," said Roy Van Keulen, analyst at Morningstar.