ASX Limited Earnings Update For The Nine Months To 31 March 2014
Relative to the prior comparative period (pcp – nine months to 31 March 2013) the unaudited results were as follows:
Revenues increased by 6.8% for the nine months to March 2014. Key market activity indicators were as follows:
- Listings: total capital raised was up 32.3% to $44.4 billion, driven by a strong second (December) quarter.
- Cash Market: average daily on-market value traded in the ASX cash market was up 5.4% to $3.3 billion.
- Derivatives: average daily number of ASX 24 futures and options on futures contracts traded was 464,407 contracts, up 9.3%. Equity options continued to underperform with volume down 20.6%.
Operating expenses increased by 6.9%, driven by investment in new products and post-trade services. Average staff numbers increased by 4.1% to 534 full-time equivalents. Expense growth in the third quarter slowed compared to the first half of the year. There is no change to previous expense growth guidance of approximately 5% for FY14.
Capital expenditure to the end of March was $28.3 million. Key initiatives remain on track and there is no change to previous capital expenditure guidance of $40-45 million for FY14.
Mr Elmer Funke Kupper, ASX Managing Director and CEO, said: “ASX’s financial performance for the nine months to 31 March was pleasing, building on the recovering global economy and the improved activity levels that were evident in the half-year results. There was growth in all of ASX’s major revenue categories during the period.
ASX is continuing to make significant investments to ensure that Australian investors have access to a world-class financial market infrastructure. By the end of the financial year we will have delivered a number of new services, including OTC clearing, client clearing and collateral management. These services provide strong risk management protections for end-investors and an efficient solution for domestic and international banks. Our investments will support Australia in meeting its G20 commitments.
A strong central market infrastructure is essential for financial market stability, and is a pre-condition to be a financial centre. All major markets in Asia have a central infrastructure supported by regulations that are tailored to the needs of the local market.
ASX is determined to ensure that Australia remains globally relevant and competitive. ASX has provided input to the Council of Financial Regulators and the Financial System Inquiry on the regulatory settings that will support this ambition.