Australian Securities Exchange (ASX) has reported AUD513.8m ($367.4m) of underlying profit after tax for the financial year 2020.
Compared to that recorded in the previous year, ASX’s underlying profit after tax in the FY2020 is up 4.4%.
ASX posted a growth in operating revenue driven by growth in listings and issuer services supported by higher secondary raisings; increase in derivatives and OTC markets due to growth in Austraclear; and higher equity post-trade services in line with lift in cash market activity.
The securities exchange reported a AUD938.4m ($672.6m) operating revenue for the FY 2020, a rise of 8.6% compared to AUD 863.8m ($619.1m), a year ago.
It reported AUD235m ($168m) operating expenses for the FY 2020, a 9% increase from AUD214.8m ($172.7m) for the FY 2019. The rise in expenses was attributed to higher costs associated with the effect of Covid-19.
The securities exchange witnessed a drop in the number of new listings across the period, while there was a significant increase in the total amount of capital raised.
ASX would pay 7.2% higher final dividend, of 122.5 cents per share, bringing the total dividends for the FY20 to 238.9 cents per share, a 4.5% increase compared to last year.
ASX managing director and CEO comments
ASX managing director and CEO Dominic Stevens said: “The 2020 financial year (FY20) presented extraordinary health and economic challenges for the global community. While ASX was not immune, we did deliver a robust result for our stakeholders.
“The strong performance of our core businesses generated solid underlying profit growth, while investment in the resilience of our systems helped ensure the availability of ASX’s markets throughout the COVID-19 pandemic. ASX’s diversified business model continues to deliver attractive earnings across different business cycles without compromising our commitment to integrity.”
Stevens added: “ASX was well-prepared for the impact of COVID-19 because of the work we’ve done in recent years to strengthen our culture, and our operational and technical foundations; diversify our product and service offerings; and evolve our rules and guidance to meet the market’s changing needs.
“We continue to deliver attractive results for all our stakeholders, including solid financial returns for our shareholders, reliability and functionality for our customers, and integrity and trust for the market’s investors.”
