ASX reported that its operating revenue reached a record high for the six months ending December 31. This was attributed to increased demand for derivatives market data, listing fees, and higher cash market trading volumes.
The exchange operator’s shares rose by as much as 9.2% during the day, marking the largest intraday surge in almost five years. The reported 10.1% increase in underlying net profit for the first half of the year amounted to A$253.7 million ($159.7 million), exceeding consensus estimates by 2.8%. The company also declared an interim dividend of A$1.112 per share.
Increased trading activities within the Australian market were fueled by changing global interest rate expectations and significant geopolitical events, which resulted in market volatility. This environment also saw a rise in initial public offerings, with net proceeds reaching $2.01 billion in 2024, the highest since 2021, according to LSEG data.
Despite its financial success, ASX continues to face scrutiny over delays in replacing its CHESS clearing and settlement system. The delay followed a December outage and has prompted investor concern. The company plans to introduce an industry test for the new CHESS clearing services later this month.
ASX’s total expenses during the first half remained flat at A$220.3 million compared to the previous year. The firm maintained its guidance for expense growth between 6% and 9% for the current financial year. Roy Van Keulen, a Morningstar analyst, noted signs of stabilization in cost growth, attributing this to the issues surrounding the failed CHESS replacement project.
The ASX’s strong performance in the first half of the year showcases its ability to attract new listings and manage market volatility, contributing to a positive outlook for investors, despite ongoing challenges with its clearing system.
