REPORTING SEASON: ASX Limited (ASX)

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Figure 1: ASX Limited 12 month chart

 

Stock market operator ASX Limited (ASX) has lifted its first half earnings by almost 11% thanks to a number of new listings and improved market activity.

Net profit came in at $189.6 million, broadly in line with consensus.

Revenue increased by 8% on the period to $329.3 million, helped by a number of initial public offerings (IPOs).

69 companies listed on the market in the period, up from 41 in the prior corresponding half, with a record number of companies listing in December.

ASX’s largest business – derivatives and over the counter markets – delivered revenue of $99.8 million, up 5.9%.

CEO Elmer Funke Kupper said it was the first time since the GFC that all major business units increased their revenue.

The company expects IPO activity to decrease in the second half and is expecting an increase in full year capital expenditure of $40-45 million from previous guidance of $40 million.

The company provided no further guidance other than Capex although analysts believe it’s unlikely the quiet trading period in January will have an impact on full year earnings.

The ASX is however facing increased competition from rival bourse Chi-X.

Shareholders will receive a slightly higher fully franked interim dividend of 88.2 cents per share to be paid on the 26th March.

Shares rose following the result and were up almost 20% in 2013.

 

You can see all of CommSec’s reporting season analysis by clicking here.

Juliette Saly, Market Analyst,