ASX statutory net profit grew by 2.7 per cent to $348.2 million, but the exchange’s final dividend slipped 3.3 per cent to 82.3 cents following an equity raising of $553 million that was successfully completed in July.
The new equity was to further support ASX’s clearing operations, with the group recently granted approval to launch a new clearing service for over the counter derivatives. ASX said following the raising, it expects to meet the higher international capital standards for clearing houses.
ASX also participated in a pro rata equity raising by software provider IRESS in August and took up full entitlement for consideration of $39.3 million.
Exchange chief executive Elmer Funke Kupper noted the global economy was “generally more stable” during the year which had boosted financial markets activity levels.
Subdued activity in the first half of the financial year meant underlying earnings were down on the previous year, but improving market conditions resulted in a 7 per cent boost to second half profits, he said.
“Revenue fell in the businesses directly linked to equity trading activity – Cash Market and Information Services,” he said.
“The decline in these businesses was more than offset by revenue growth in ASX’s other businesses, including Listings and Issuer Services, Derivatives, Technical Services and Austraclear.”
Cash Market revenues fell 7.9 per cent to $114.6 million, with ASX saying it “performed well in a highly competitive trading market”. Information Services revenue fell 7.8 per cent to $49.8 million due to a fall in equity market activity, ASX stated. Revenue in every other business unit increased.
