REPORTING SEASON: ASX Limited (ASX)
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Figure 1: ASX Limited 12 month chart
ASX Limited (ASX) lift in market activity & listings boosted result
ASX Limited (ASX) the operator of Australia’s primary securities and futures exchanges reported a solid half year result to the end of December 2014.The ASX posted a 5.9% lift in revenue on an increase in fees generated from new listings and higher trading volumes.
Listings and issuer services revenue increased by 7.9% to $87.9 million. Initial Public Offerings (IPOs) revenue was up 1.8% to $11.4 million. While the number of IPOs only increased by 2 to 71, the result was helped by the listings revenue generated by the privatisation of health insurer Medibank Private (MPL) in November 2014.
Secondary capital raisings revenue increased by 3.6% to $21.2 million and issuer services revenue was also higher. Cash market trading i.e. cash from regular shares placed by brokers on the ASX (trading, clearing and settlement fees) lifted by 5.1% to $17.4 million while the warrants market fell. Derivatives and OTC markets revenue hit $103.2 million, up 3.3%.
The ASX is very positive about growth in revenue for the rest of FY15 after “activity levels in the first five weeks of the second half were supported by higher levels of volatility”. The ASX did advise the market that it will be accounting for a one-off restructuring charge of $6.5 million in 2H15 for its new investment into its platforms.
ASX will pay a $0.923 interim dividend (90% payout ratio) on 18 March 2015.