ASX Reports Solid 2016 Results Amid Increased Market Activity

The exchange has reported growth in all business lines underpinned by higher trading activity and robust capital raisings.

The Australian Securities Exchange (ASX) today released its full-year results to 30 June, 2016, which saw solid results across the board. This was driven by a rise in secondary capital raisings within the financial sector and increased trading activity due to heightened volatility, particularly in the second half of the year.

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Financial Highlights

The exchange recorded total operating revenues of $746.3 million compared with the previous year’s $700.7 million, or an increase of 6.5% year-on-year. Underlying profit came in at $426.2 million compared with $403.2 million in 2015, which represents a 5.7% increase from the previous year’s results. EBITDA for the year was $575.7 compared with $540.6 in 2015, or an increase of 6.5 percent year-on-year.

Strong performance was noted in the exchange’s Listings and Issuer Services, with revenues of $192.7 million, or a 5.0 percent year-on-year increase over 2015 figures of $176.6 million. Listings revenue includes annual listings fees, fees related to capital raisings and revenue from structured products.

Cash market revenues rose by 12.9 percent to $40.7 million, up 12.9 percent on $36.1 in 2015, whereas derivatives and OTC markets revenue was $265.8 million compared with $253.9 in 2015, or an increase of 4.7 percent year-on-year.

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Commenting on the results, Rick Holliday-Smith, ASX Chairman said: “ASX delivered strong financial results in FY16, with growth in all key business areas, supported by higher market activity. This was driven by a rise in secondary capital raisings within the financial sector and increased trading activity due to heightened volatility, particularly in the second half of the year, culminating in the surprise of Brexit. Revenue was up 6.5% to $746.3 million and profit after tax rose 5.7% to $426.2 million.”

Overall, ASX’s diversified business model and higher activity levels produced growth in each of its main business lines. Strong trading activity underpinned growth in cash equities trading, where ASX maintained its domestic on-market trading share of approximately 89 percent.

Other Highlights

Increased overall market activity also translated into a positive result for the equity post-trade services of clearing and settlement.

In addition, ASX has continued to diversify its service offering to market participants by growing the community of customers within the Australian Liquidity Centre, its primary data centre. 

Progress in business initiatives resulted in the expansion of the listings franchise, with growth in the New Zealand, technology and mFund segments.

Exchange-traded derivatives also achieved satisfactory growth and good progress has been made in developing ASX’s OTC Clearing Service, with increased liquidity and new customers added.

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