- Record profit of $59.1 million, an increase of 15.9%
- Record revenue of $205.1 million, an increase of 6.5%
- Earnings of 60.9 cents per share (pre goodwill)
- Final dividend of 21.1 cents per share fully franked
- Increase in the level of trading activity for all products.
The profit was achieved on revenue of $205.1 million, which excludes interest and dividend revenue. This revenue was 6.5% higher than the $192.6 million achieved during the previous corresponding period.
Commenting on the results, ASX Managing Director and CEO, Richard Humphry said: "We have achieved a very strong result during what has proved to be an extremely difficult year for financial markets worldwide. As promised, we have been very determined to keep a lid on our costs and maintain our operating margins. This disciplined policy will continue.
"The Board has declared a final dividend of 21.1 cents per share fully franked, which compares with the interim dividend of 19.5 cents and the previous final dividend of 16.5 cents per share. This is consistent with our policy of paying 70% of profit after tax, a policy that will give ASX flexibility and adequate cash reserves in the current environment.
"The performance of our markets is very pleasing, with our derivatives products continuing to perform particularly well. The gradual and deliberate expansion of our product range is giving growth to our core markets, even during a volatile year for market returns."
"The continuing strength of the Australian domestic economy, the underlying resilience of our co-regulatory supervisory structure and the absence of excessive volatility experienced by markets elsewhere have all been reflected in the further improvement of our market's position globally, with Australia now firmly entrenched within the top-10 of the Morgan Stanley Capital International (MSCI) global index."
Financial and operating performance
- Revenue from equities trading, clearing and settlement increased by 8% to $91.5 million. Daily average equities trades were 56,144 compared with 51,386 for the previous corresponding period, an increase of 9%.
- Revenue from listings increased by 9% to $37.0 million. There were 91 new listings compared with 156 for the previous corresponding period, but this was more than offset by the level of secondary capital raisings.
- Revenue from derivatives increased by 18% to $38.3 million. Daily average options contracts were 58,759, 27% higher than the 46,226 for the previous corresponding period. Daily average warrants trades were 1,889 compared with 1,223 for the previous corresponding period. There were 1,978 new warrants series listed compared with 1,403 for the previous corresponding period.
- Revenue from market data decreased to $28.8 million from $33.3 million for the previous corresponding period.
- Other revenue contributed $9.4 million compared with $8.4 million for the previous corresponding period.
- Interest and dividend revenue increased to $5.3 million from $5.1 million.
- Operating expenses increased by 5% to $127.1 million..
- EBIT increased to $78.0 million, a 9% increase on the $71.7 million recorded for the previous corresponding period.
- ASX Perpetual Registrars contributed $2.0 million compared with $0.1 million for the previous corresponding period. Amortisation of goodwill amounted to $2.5 million.
- Earnings per share were 60.9 cents pre goodwill amortisation and 58.3 cents post goodwill amortisation.
- Final dividend declared is 21.1 cents per share compared with 19.5 cents for the interim dividend, and 16.5 cents for the previous final dividend.
Commenting on ASX's initiatives, Mr Humphry said: "We have implemented several key initiatives during the period. These include the world's first comprehensive exchange-to-exchange cross-border trading link with Singapore Exchange, the establishment of ASX Perpetual's own 'oscar' share registry system and the successful migration of some of Australia's largest companies across to it, and the launch of ASX's first futures products.
"Several other key long-term initiatives remain under development, including most notably ASX FundConnect, our proposed unlisted product transaction system."
Corporate Governance
Commenting on ASX's corporate governance practices, Mr Humphry said: "ASX's board and management are committed to conducting the company's business ethically and in a way that is open and accountable to shareholders and the wider marketplace. We believe our corporate governance practices as a listed company are appropriately rigorous and of a high standard.
"As we have done in previous years, our annual Report to Shareholders 2001-02 will discuss our corporate governance practices in detail, in line with Guidance Note 9 attached to the ASX listing rules. The Report will also take account of the recommendations issued by the Corporate Governance Council after its inaugural meeting on 15 August 2002.
"ASX recognises a dual obligation to observe high standards of ethical behaviour. ASX is both a listed company responsible to our shareholders, and a market operator responsible, as a condition of our licence issued under the Corporations Act, for ensuring the integrity of the market. We believe our success in one role is inextricably linked to our success in the other - since a failure to provide markets of integrity would not only breach our licence obligations but also damage the interests of our shareholders.
"Accordingly ASX conducts a diverse range of supervisory activities designed to enhance the integrity, reliability and efficiency of market activity. This supervisory activity, including the co-regulatory operation of the Continuous Disclosure regime, will also be discussed in our Report to Shareholders. As a further layer of accountability and transparency, this supervisory role is scrutinised by ASX Supervisory Review Pty Limited; ASXSR will also be discussed further in the Report.".
Outlook
Commenting on the outlook, Mr Humphry said: "There is a considerable degree of uncertainty as to the direction that markets will take over this financial year. We cannot predict market activity, which remains the principal driver of ASX's revenue.
"Trading levels in July were slightly up on the same period last year, but slightly down on the previous August, traditionally a quieter month. Trading activity across the board appears to be holding up well.
"In the current debate on corporate governance, Australia's position and performance remains extremely well regarded, and through past reforms and initiatives now underway this position has been further strengthened.
"Together with the ongoing performance of the Australian economy, ASX's Corporate Governance Council and the imminent CLERP 9 reforms, investors have every reason to be confident in the standards of corporate behaviour and financial reporting."
The full year results can be viewed by clicking here.
