ASX HY profit edges lower

February 18, 2010

ASX Limited (ASX) reported a normal net profit after tax of $170.6 million for the half year to December 2009, down 0.8% on the prior corresponding period. However, ASX noted that the result was up 20.4% on the previous six months to 30 June 2009.

The profit was derived from operating revenue of $302.8 million, 5.7% higher than the pcp, and on a cash operating expense base of $68.2 million, 2.8% lower than cash operating expenses in the pcp.

The company said the slight decrease in profitability was due to a 51.4% reduction in net interest income, arising from a lower cash rate environment, reduced credit spreads and lower participant balances as a consequence of volatility returning to more normal levels.

Managing Director and CEO Robert Elstone said revenues were up across all four of the group’s major activity streams – capital raisings, secondary market trade execution, derivatives markets and overthe-counter market services – and by a decline in cash operating expenses.

Listings revenue was $65.3 million, up 16.7% on the pcp, while cash market revenue net of transaction fee rebates was up 5.6% and derivatives revenue was up 2.5%.

However, information services revenue slid 4.5%.

An interim dividend of 89.1 cents per share fully franked has been declared, dow1.4% on the pcp.

ASX has maintained paying 90% of normal net profit after tax as fully franked dividends to shareholders.

At 1122 AEDT, ASX shares were up 56c to $36.41.

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