ASX operator’s shares tank after flagging increase in capex for FY27, FY28
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More news: Shares in the ASX plunged in afternoon trade after the bourse operator boosted its capital expenditure guidance for FY27 and FY28 to fund its technology modernisation program. The capital expansion will support its revised ‘Accelerate Program’ following an inquiry by ASIC.
The market operator also flagged a $12 million after-tax loss for FY26 stemming from an agreement to sell its 49% interest in Simpli to its joint venture partner ATI Group.
Shares plummeted 12.29% to $51.58 at 1:25pm AEST.
ASX lifts FY27 capex guidance on tech overhaul, offloads Sympli stake
The news: Bourse operator ASX has hiked its capital expenditure guidance for FY27 and FY28, driven by technology cost inflation and new product development.
The company has also agreed to sell its 49% interest in property settlement provider Sympli to its joint venture partner ATI Group, for a nominal amount. It will incur an after-tax loss of around $12 million, which will be recognised as a significant item in FY26.
The numbers: ASX increased its FY27 capex guidance from $160-180 million to $180-200 million. It now expects FY28 capex of $170-190 million, while FY26 guidance is unchanged.
The company also issued FY27 total expenses growth guidance of between 18% and 21%. Operating expense growth, excluding depreciation and amortisation, is guided to between 13% and 16% compared to FY26 total expenses.
The context: ASX the expense growth is due to its technology modernisation program, and its expanded ‘Accelerate Program’ as part of its response to the ASIC inquiry and investments to support customer-driven growth.
The final ASIC inquiry panel report identified historical underinvestment compared to global peers, which ASX has committed to address with “fast pace and greater ambition”.
The source: ASX
