Shares in ASX higher on record revenue
Make us a preferred source
Make us a preferred source on Google
More news: Shares in the Australian Securities Exchange (ASX) gained after reporting a lower underlying net profit after tax amid rising operating costs and a weak listings market.
ASX shares were up 1.16% to $64.472 by 11:25am AEST.
ASX underlying profit falls despite record revenue
The news: The Australian Securities Exchange (ASX) has reported a lower underlying net profit after tax amid rising operating costs and a weak listings market.
The numbers: The exchange made a full-year underlying NPAT of $474.2 million, down 3.2% on the year prior.
The decline was driven by total expenses jumping 14.7% in line with guidance, attributed to higher staffing costs related to compliance and technology. Coming in at $429.5 million, the figure also included an additional supervision levy from the Australian Securities and Investments Commission (ASIC).
The company also posted record operating revenue of $1.03 billion, up 2.4%, on the back of stronger markets and data business arms within the ASX.
But those higher costs combined with a weaker listings market offset the full-year performance, with the full-year dividend of $2.08 down 8.9% on the year prior.
The context: The result represents the first year of the ASX's five year strategy amid "challenging market conditions".
While the listings market remains quiet, the exchange said the success of the Guzman y Gomez IPO in June has helped stir up inbound interest.
Lofthouse guided costs to grow at a slower rate of between 6% and 9% over the next year "as a result of ongoing expense management".
Its full year earnings comes two days after ASIC alleged the exchange had made misleading and deceptive statements about the progress of its Clearing House Electronic Subregister System (CHESS) replacement program.
"We recognise the significance and serious nature of these proceedings and are now carefully reviewing and considering the allegations," CEO Helen Lofthouse said.
Cleaning out senior leadership and introducing new processes, Lofthouse said the exchange was driving towards "a new era ASX".
The source: ASX announcement
