ASX LIMITED FULL-YEAR RESULTS TO 30 JUNE 2017 (FY17)
CONTINUED EARNINGS GROWTH - NPAT UP 1.9% TO $434.1M
MACRO FACTORS PLUS BUSINESS INITIATIVES DRIVING GROWTH
Highlights relative to the prior comparative period (FY16) based on Group segment reporting:
Profit after tax
$434.1 million
↑$7.9m
↑1.9%
Operating revenue
Growth in Derivatives and OTC Markets, Trading Services and Equity Post-Trade Services, supported by higher activity levels
Listings and Issuer Services flat, with capital raised lower but IPOs up
Higher investment in people and technology to support customer and growth-related initiatives, in line with guidance
Operating expenses
$764.1 million
$180.9 million
↑$17.8m
↑$2.4%
↑$10.3m
↑6.0%
Earnings per share
224.5 cents
↑1.9%
Final dividend per share
Fully franked, 90% payout ratio
Full-year dividends per share
99.8 cents
201.8 cents
↑0.8%
↑1.9%
Strategic initiatives progressing across all businesses
Expanding listing franchise with foreign and tech companies, exchange-traded products and mFund
Strong growth in the ALC community, Centre Point, OTC Clearing and ASX Collateral services
Implemented new futures trading platform in March 2017, providing improved functionality
Continuing stakeholder engagement program for upgraded equities post-trade business processes
On track to assess the suitability of distributed ledger technology by the end of 2017
Commenced BBSW benchmark rate administration in January 2017, with new methodology set for launch in FY18
Enhanced listings admission requirements in place from December 2016
Mr Dominic Stevens, ASX Managing Director and CEO, said: "ASX has built on its strong first half results with a solid performance for the full 2017 financial year. Activity and revenue levels were higher across most major areas of the business, and our strategic initiatives - both new and existing - progressed well over the period. A combination of macro-economic drivers and ASX's own investments provide the company with growth opportunities for the future.
"Total Group revenue grew by 2.4% to $764.1 million, an increase of $17.8 million, and profit after tax rose 1.9% or $7.9 million to $434.1 million - the fifth consecutive year of profit growth. The result was underpinned by growth in cash market and derivatives trading activity, due in part to ongoing global uncertainty and pockets of volatility. The daily average cash on-market value was $4.3 billion and the daily average number of futures contracts traded was more than 556,300. Revenue from listings was flat year-on-year. Despite the total amount of capital raised being lower, down 28.8%, there were significantly more new listings in FY17, rising from 124 to 152, the most in six years, including many foreign and technology company listings.
"ASX continues to invest in leading infrastructure that positions Australia's financial markets for the future. Expenses rose by 6.0% to $180.9 million and capital expenditure was $50.3 million, both in line with market guidance. The spending relates to continued infrastructure upgrades as well ASX initiatives such as the new futures trading platform, development work associated with becoming the BBSW benchmark rate administrator, and progress on distributed ledger technology as a potential solution to replace CHESS. We are on track to assess the suitability of DLT by the end of 2017.
"I have now been CEO of ASX for 12 months. The company's diversified business model and the traction being achieved by initiatives such as Centre Point, the Australian Liquidity Centre and OTC Clearing are providing positive growth momentum. I am also excited by the opportunities emerging from other technology-based initiatives, such as DLT and data analytics. In each case, ASX is seeking to provide efficiencies for customers, greater choice for investors and improve the competitiveness of Australia's financial markets. At the same time, the work we are doing to enhance the resilience and functionality of our systems, and ensure our rules, guidance and operating procedures remain contemporary, are keeping our standards high and strengthening the trust of all ASX stakeholders."
Please see the accompanying presentation slides for individual business highlights.
Complete full-year results materials, including ASX's 2017 Annual Report, will be available on the ASX website.
A webcast of today's 10.00am (Sydney time) presentation to analysts and media will be available at: http://www.asx.com.au/fy2017webcast
Further enquiries
Media
Matthew Gibbs
General Manager, Media and Communications Tel: +61 2 9227 0218
APPENDIX - ASX full-year results to 30 June 2017 (FY17) based on the Group's segment reporting
Group income statement
FY17 $m
FY16 $m
Variance $m
Variance %
Operating revenue
764.1
746.3
17.8
2.4%
Operating expenses
(180.9)
(170.6)
(10.3)
(6.0%)
EBITDA
583.2
575.7
7.5
1.3%
Depreciation and amortisation
(46.0)
(42.7)
(3.3)
(7.8%)
EBIT
537.2
533.0
4.2
0.8%
Interest and dividend income
79.2
73.1
6.1
8.4%
Profit before tax
616.4
606.1
10.3
1.7%
Income tax expense
(182.3)
(179.9)
(2.4)
(1.3%)
Profit after tax
434.1
426.2
7.9
1.9%
Operating revenue
FY17 $m
FY16 $m
Variance $m
Variance %
Listings
150.3
149.4
0.9
0.6%
Issuer services
42.4
43.3
(0.9)
(2.0%)
Listings and Issuer Services
192.7
192.7
0.0
0.0%
Equity options
21.7
23.1
(1.4)
(6.4%)
Futures and OTC clearing
197.4
194.3
3.1
1.6%
Austraclear
50.0
48.4
1.6
3.4%
Derivatives and OTC Markets
269.1
265.8
3.3
1.2%
Cash market trading
46.3
40.7
5.6
13.8%
Information services
82.5
80.1
2.4
3.0%
Technical services
67.2
62.0
5.2
8.4%
Trading Services
196.0
182.8
13.2
7.2%
Cash market clearing
53.3
54.1
(0.8)
(1.6%)
Cash market settlement
51.1
47.9
3.2
6.8%
Equity Post-Trade Services
104.4
102.0
2.4
2.3%
Other
1.9
3.0
(1.1)
(36.6%)
Operating revenue
764.1
746.3
17.8
2.4%
Key activity indicators
FY17
FY16
Variance
Variance %
All Ordinaries Index (end of period)
5764.0
5310.4
453.6
8.5%
Number of new listed entities (IPOs)
152
124
28
22.6%
Capital raised, including scrip-for-scrip
$56.0 billion
$78.6 billion
($22.6 billion)
(28.8%)
Daily average cash on-market value
$4.267 billion
$4.170 billion
$0.970 billion
2.3%
Equity options daily average contracts traded
409,814
399,486
10,328
2.6%
Futures daily average contracts traded
556,321
532,386
23,935
4.5%
OTC cleared notional value
$5,166.0 billion
$2,742.0 billion
$2,424.0 billion
88.4%
Variances expressed favourable/(unfavourable)
ASX Limited published this content on 17 August 2017 and is solely responsible for the information contained herein. Distributed by Public, unedited and unaltered, on 19 August 2017 16:17:01 UTC.
Original documenthttp://www.asx.com.au/documents/investor-relations/ASXFY17ResultsMediaRelease.pdf
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ASX Limited (ASX) is a vertically integrated multi-asset exchange company. The Company is engaged in offering listings, trading, clearing, settlement, technical and information services, technology, data and other post-trade services. It acts as a market operator, clearing house and payments system facilitator. The ASX operates markets for a range of asset classes including equities, fixed income, commodities, and energy. Its activities span primary and secondary market services, including the raising, allocation and hedging of capital flows; trading and price discovery; central counterparty risk transfer, and securities settlement for both the equities and fixed income markets. ASX operates through four divisions: listings, markets, technology and data, and securities and payments. It also provides data and technology services to intermediaries, banks, information vendors and software developers to help them make decisions, offer services to their clients and connect with one another.
ASX LIMITED 
