ASX Announces Record Interim Profit After Tax And Before Abnormals

Australian Stock Exchange Limited ("ASX") today announced an operating profit after tax and before abnormal items for the six months to 31 December 1999 of $24.933 million, an increase of 51.7% from the $16.433 million recorded for the previous corresponding period. This resulted in an operating profit after tax and abnormals of $23.014 million, which was marginally lower than for the previous corresponding half due to a significant abnormal tax benefit being recorded in the six months to 31 December 1998. The record pre-abnormal profit was achieved on revenues of $87.808 million, an increase of 21.6% on the $72.219 million recorded for the first half of the 1998/99 financial year. The Board has declared a fully franked interim dividend of 24.3 cents per share compared to 15.5 cents for the previous corresponding period. This is equivalent to a 100% payout ratio and has been calculated as 64% of the interim profit before tax and abnormals. In addition, the Board has declared a special fully franked dividend of 10 cents per share. Subject to shareholder approval at a General Meeting to be held on 20 March 2000, the company will also make a capital return of 20 cents per share. Commenting on the results, ASX Managing Director, Mr Richard Humphry, said: "The Australian equities and derivatives markets have continued to achieve record trading volumes, which is reflected in the company's increase in revenues. Due to ASX's relatively fixed cost base, this revenue growth has resulted in strong profit growth for the first half of the year. "In addition to the pleasing financial results, the period was notable for the progress we have made on a number of new initiatives such as the introduction of our new retail market for interest rate securities and the successful introduction of index options and LEPOs (low-exercise-price-options) over the All Ordinaries Index. Both of these initiatives, along with our recent agreement to provide the technology platform for the Newcastle Stock Exchange, form part of our focus on diversifying and enhancing our products and services," he said. The volume of equity trades for the period reached 5.57 million, representing $156 billion in value, and an increase of 54.3% on the 3.61 million trades recorded in the previous corresponding period. Despite a reduction in the average trading and settlement fee from $6.22 to $5.67 due to ASX's commitment to set its fees at levels of international best practice and growth in the volume of lower value trades, the record trading volumes resulted in a 32.5% increase in revenue from equities trading and clearing, from $29.936 million to $39.663 million. In addition, record volumes in derivatives trading and settlement resulted in a 24.1% increase in revenue from $11.223 million to $13.931 million for the period. Due to 104 new listings during the period compared with 34 for the previous corresponding period, listing revenues also achieved strong growth, rising from $16.498 million to $18.464 million. In addition, the overall high level of market activity resulted in an increase in revenues from the sale of market data, which grew from $11.793 million to $13.491 million.