ASX (ASX) H2 2024 earnings summary

Executive summary

• Record FY24 operating revenue of AUD 1.03 billion, up 2.4% year-over-year, driven by growth in Markets and Technology & Data segments despite challenging equity markets.

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

• Major investments in regulatory commitments and technology modernization, including new CHESS Replacement roadmap and product launches, aligned with a five-year strategy.

• Ongoing ASIC civil proceedings 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 FY23; EBIT fell 4.8% to AUD 604.8 million; EBIT margin declined to 58.5%.

• Total expenses rose 14.7% to AUD 429.5 million, mainly from higher employee, equipment, and regulatory costs.

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

• Underlying ROE was 13%, down from 13.4% in FY23.

• Fully franked final dividend of AUD 1.068 per share, total FY24 dividend AUD 2.08 per share, down 8.9% year-over-year.

Outlook and guidance

• FY25 total expense growth expected between 6%-9%, with operating expense growth of 4%-7%.

• CapEx guidance of AUD 160-180 million per year through FY27, supporting technology modernization.

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

• Anticipates continued growth in interest rate futures and data services, with cautious optimism for increased IPO activity.