Profit lift proves ASX tactics right

A JUMP in capital raising and futures trading activity has helped the operator of the Australian Securities Exchange to bolster its firsthalf profit.

ASX Limited yesterday posted a net profit of $230.5 million for the six months to December, up 5.1 per cent from the same period a year earlier.

It came as revenue jumped 8 per cent to $501.5 million, and as the group continued with its diversification strategy by adding foreign and technology listings.

Chief executive Dominic Stevens said the group had made good progress on its blueprint to diversify its earnings streams.

It added 18 foreign listings in the six-month period, taking the total number of foreign listings to 279.

Tech listings grew by 11 to 220, with the bourse’s tech sector having grown 140 per cent in the past three years.

Mr Stevens said investments in data and technical capacity were also driving new business as customers around the world sought cheaper, simpler services.

“We see these opportunities as complementary to our traditional areas of focus,” he said.

ASX-listed companies raised $33.9 billion in secondary capital during the half — a substantial increase on the $25.8 billion raised in the same period a year earlier.

That helped boost revenue from listings and issuer services by 10 per cent to $113.5 million.

And while new listings on the exchange were lower in the six months at 77 — compared with 86 a year earlier — the total value of initial public offerings remained almost unchanged at $11 billion.

Mr Stevens reiterated that the company was working towards implementing new blockchain, or distributed ledger, technology to replace its Chess settlement system.

The company plans to provide an update in March on the launch date for the new system and on its capabilities. ASX Limited First-half results Net profit $230.5m — up 5.1% Revenue $501.5m — up 7.8% EPS 119.1c — up 5% Dividend (interim) 107.2c — up 5.2c