ASX Reports Strong Uptick in Revenues in 2018 Financial Results

The Australian Securities Exchange (ASX) has published its full-year earnings for its 2018 financial year ended June 30, 2018 today. During the year, the Exchange Exchange An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv Read this Term saw each of its four main businesses experience growth.

Net profit after tax was up by 2.5 percent or $8 million (AU$11 million) when compared to the 2017 financial year, coming in at $323.9 million (AU$445.1 million). Underlying profit after tax also saw an uptick of 7.2 percent to $338.5 million (AU$465.3 million).

For the exchange operator, operating revenue for the 2018 financial year was $598.6 million (AU$822.7 million). This is an increase of 7.7 percent or $42.6 million (AU$58.6 million) year-on-year. According to the statement, the growth in earnings can be attributed to an increase in listings, a rise in futures trading and a lift in Trading Services, among other reasons.

For the 12 months ended June 30, 2018, operating expenses jumped by eight percent year-on-year to hit $142.2 million (AU$195.5 million). This is largely due to an increase in the Australian Securities and Investments Commission (ASIC) levy and electricity charges.

ASX experiences growth across its four main businesses

Commenting on the results, Dominic Stevens, ASX Managing Director and CEO, said: “This is a very pleasing financial result reflecting ASX’s disciplined balance between investing in the operation and integrity of our core businesses - our Stronger Foundations initiative - and pursuing growth initiatives.

“Underlying profit rose 7.2 percent on last year to $465.3 million, an increase of $31.2 million. Each of ASX’s four main businesses grew, with the overall performance driven by higher capital raisings and increased futures trading, particularly from offshore customers. Cash market trading was down slightly amid low levels of market Volatility Volatility In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, or stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Trad In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, or stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Trad Read this Term. But revenue from technical and information services grew due to increasing connections and data feeds.”

According to the statement, due to a growth in initiatives and solid core business performance, final dividend per share increased by 9.3 percent to 79.4 cents (AUD 109.1 cents). The total dividends for the 2018 financial year were 157.4 cents (AUD 216.3 cents), up 7.2 percent from the same period in 2017 for the securities exchange.