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New business boosts ASX H1 profit to $231m

AAP  |  15 Feb 2018Text size  Decrease  Increase  |  
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SYDNEY - [AAP] A jump in capital raising and futures trading activity has helped stock exchange operator ASX Limited (ASX: ASX) lift half-year profit, as it continues with its diversification strategy by adding foreign and technology listings.

ASX Limited's net profit for the six months to December 31 rose by 5.1 per cent to $230.5 million, on the back of an eight per cent revenue jump to $501.5 million.

As the Australian exchange operator looks to diversify its earnings streams, chief executive Dominic Stevens said ASX had made good progress on its previously announced plans to increase foreign and technology company listings.

ASX added 18 foreign listings in the six-month period, taking the total number of foreign listings to 279.

At the same time tech listings grew by 11 to a total 220, with the ASX tech sector having grown 140 per cent in the past three years.

Mr Stevens said investments in new data and technical capacity were also driving new business as customers around the world sought cheaper, simpler services.

"We see these opportunities as complementary to our traditional areas of focus," he said.

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ASX-listed companies raised $33.9 billion in secondary capital raisings during the six months to December 31, a substantial increase on the $25.8 billion raised in the previous corresponding half-year that helped boost ASX's revenue from listings and issuer services by 10 per cent to $113.5 million.

And while new listings on the Australian Securities Exchange were lower in the first half of 2017/18 at 77, compared to 86 a year earlier, the total value of IPOs was almost unchanged at $11 billion.

Mr Stevens said ASX was working towards implementing new blockchain, or distributed ledger, technology to replace its current CHESS settlement system, with an update due in March on the new system's start date and capabilities.

ASX shares were up $1.94, or 3.6 per cent, to $56.04 at 1418 AEDT.

ASX TAKES STOCK OF A BUMPER HY18:

* Net profit up 5.1 per cent to $230.5m

* Revenue up 7.8 per cent to $501.5m

* Interim dividend 107.2 cents, fully franked, up from 102 cents

 

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© [2018] Australian Associated Press Pty Limited (AAP) or its Licensors. This is the Morningstar service with content provided by AAP where indicated. AAP reserves all rights, including copyright, in services provided by it. The information in the service is for personal use only, does not constitute financial product advice (whether general or personal) and may not be re-written, copied, re-sold or re-distributed, framed, linked or otherwise used whether for compensation of any kind or not, without the prior written permission of AAP. You should seek advice from a professional financial adviser before making decision to acquire or dispose of a financial product.

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© 2021 Australian Associated Press Pty Limited (AAP) or its Licensors. This is the Morningstar service with content provided by AAP where indicated. AAP reserves all rights, including copyright, in services provided by it. The information in the service is for personal use only, does not constitute financial product advice (whether general or personal) and may not be re-written, copied, re-sold or re-distributed, framed, linked or otherwise used whether for compensation of any kind or not, without the prior written permission of AAP. You should seek advice from a professional financial adviser before making decision to acquire or dispose of a financial product.

This service is published for general information purposes only without assuming a duty of care. AAP is not in the business of providing financial product advice (whether personal or general advice), and gives no warranty, guarantee or other representation about the accuracy of the information or images contained in this service. AAP is not liable for errors, omissions in, delays or interruptions to or cessation of the services through negligence or otherwise. The globe symbol and "AAP" are registered trademarks.

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