ASX (ASX) H2 2024 earnings summary

Executive summary

• Record FY24 operating revenue of AUD 1.03 billion, up 2.4% year-over-year, despite challenging equity markets and a 14.7% increase in total expenses to AUD 429.5 million.

• Underlying NPAT declined 3.4% to AUD 474.2 million, while statutory NPAT increased due to the absence of prior year CHESS derecognition loss and significant items in FY23.

• Major investments in regulatory commitments, technology modernization, and business efficiency, aligned with the first phase of a five-year strategy.

• Revenue growth in Markets and Technology & Data segments was partially offset by declines in Listings and Securities & Payments.

• Ongoing civil proceedings filed by ASIC regarding statements made in 2022 about the previous CHESS replacement project.

Financial highlights

• Operating revenue reached a record AUD 1.03 billion, up 2.4% from FY 2023; EBIT margin declined to 58.5% from 62.9% in FY 2023.

• Total expenses rose 14.7% to AUD 429.5 million, within guidance, driven by regulatory and technology investments.

• Net interest income increased 8.3% to AUD 76.7 million.

• Underlying ROE was 13%, down from 13.4% in FY 2023; 2H24 ROE improved to 13.3%.

• Fully franked final dividend of AUD 1.068 per share, total FY 2024 dividend AUD 2.08 per share, with a payout ratio at 85% of underlying NPAT.

Outlook and guidance

• FY 2025 total expense growth expected between 6%-9%, with operating expense growth of 4%-7%.

• CapEx guidance of AUD 160-180 million per year through FY 2027, supporting technology modernization.

• Focus remains on cost management, revenue growth, and maintaining ROE within the 13%-14.5% target range.

• Market conditions seen as supportive for interest rate futures and data services, with cautious optimism for increased IPO activity.