Australian Securities Exchange ASX Profits $171.1m 1H2013

Submitted by Share Trading on 25 February, 2013 - 12:14

Stockmarket operator Australian Securities Exchange (ASX:ASX) have reported the results of company performance to shareholders.

  • ASX Net Profit for the half $171.1 million, down 2.5 percent from $175.6 million in the previous corresponding period.
  • Underlying profit down 5.3 percent to $171.1 million, from $180.7 million.
  • ASX is expected to spend up to $40 million for the full year on a "significant investment in new products and services", which includes the development of an over-the-counter derivatives clearing service for the Australian market.
  • ASX CEO Elmer Funke Kupper said, "The recent economic and political news from the United States and Europe suggests that there is a greater level of stability, from which economic recovery becomes possible. In Australia, market volatility has been low and recent activity levels have been more stable. While this does not create an immediate higher growth environment for exchanges, it does support a gradual return of investor confidence."
  • Derivatives and over-the-counter markets was the largest of ASX's businesses reaping in 31 percent of revenue and had a 7 percent increase in trades in the first seven weeks of the second half of the 2012/13 financial year.
  • ASX had $2 billion in capital raised through listings and share issues since the end of December, 49 per cent increase on the previous corresponding period.
  • ASX revenue from ordinary activities in the period fell 5.9 percent, to $387.6 million.
  • Revenue from market activities fell 18 percent to $54.9 million as the average daily value traded on ASX fell by 24.5 percent.
  • Chi-X Australia became ASX's first competitor in October 2011.
  • ASX's monopoly has been maintained for clearing and settlement of equity trades. The Council of Financial Regulators have advised Treasurer Wayne Swan to defer for two years any license application from an equities clearing facility seeking to compete in the Australian market. LCH.Clearnet Ltd., Europe’s largest clearing house had applied for a licence to operate in Australia.
  • ASX declared an interim fully-franked dividend of 87.9 cents per share down from 92.8 cents from the previous corresponding period. Ex-dividend date at March 4 2013.

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