The Australian Securities Exchange (ASX:ASX) published its financials for the first half of the financial year 2021, ending on December 31, reporting a rise in its revenue, but a slump in profits.
The operating revenue for the period came in at AUD 470.5 million, 3.4 percent higher than the figures of the corresponding quarter in the previous year. The exchange detailed that its listing and issuer services gained steam, along with an increase in its trading services. However, there was a decline in the demand for derivatives and the OTC market.
The EBIT of the exchange for the period jumped by AUD 4 million from last year to AUD 319.1 million. However, the expanse rose by 8.2 percent year-over-year to AUD 151.4 million.
Due to the mixed conditions in revenue and expenses, the Australian exchange’s after-tax profits went down by 3.4 percent. In absolute terms, the profits remained AUD 241.8 million. The net interest income dipped to AUD 26.7 million, 39.5 percent lower than the previous year.
Demand in the Market Skyrocketed
“Revenue growth in our cash equities-related activities – particularly Listings and Issuer Services, and Trading Services – offset the economic impact of COVID-19 and the RBA’s yield curve control program on our Derivatives and OTC Markets business,” said Dominic Stevens, ASX Managing Director and CEO.
The exchange facilitated the listing of 85 new companies in the period, 50 percent higher than the corresponding year-half of the previous financial year.
Moreover, the Australian exchange is in the middle of a major technological transformation. It is in the process of adopting the efficient decentralized system replacing the legacy settlement system. However, the process is delayed till April 2023 after the impact of COVID-19 in the industries.
“As expected, the challenges arising from COVID were felt during the half and are likely to continue for at least the short term. ASX remains well-positioned to serve Australia’s financial markets and our shareholders, given our mix of businesses, product and operational expertise, and commitment to investing in the technology that supports our industry’s integrity and growth,” Stevens added.
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