The stockmarket’s burbling and after reporting a solid 2015-126 result (when the market fell 5%), investors will be looking for the ASX Ltd to clock up another good year in 2016-17.
In fact the 2015-16 performance of the ASX was despite a sharp fall in the value of new initial public offering capital raisings in the year, which was offset by a 10% jump in the value of secondary capital raisings and placements, and a solid year for the OTC and derivatives side of the market.
ASX Ltd reported a 5.7% rise in full-year underlying net profit to $426 million, much better than the 0.5% fall in the ASX 200 over the financial year, but well behind the 13% rise in the ASX share price over the year to June 30.
The company’s statutory net profit rose 7.1% to $426 million, a bit quicker than the 6.5% rise in revenue to $746.3 million, indicating a slight fattening of the company’s already fat profit margins (on an EBITDA basis, they are around 77%).
The company declared a final dividend of 99 cents, taking the full year payout to 198.1 cents a share, up 5.7% on 2014-15’s level.
It is the first result delivered by new chief executive Dominic Stevens, who moved from the director’s table to the CEO role on August 1, replacing Elmer Funke Kupper who resigned in March amid still unresolved bribery allegations.
Mr Stevens said yesterday (in something of an understatement) that he had “inherited a business in very good shape and with a strategy that is focused on delivering positive outcomes for shareholders and customers over the medium-term.”
The company did not provide guidance for the 2017 year, but said that July listings activity and futures trading were down, while cash equities trading was up 4.9%.
The value of new floats in 2015-16 fell sharply, from $38.9 billion to $23.6 billion. That is despite the number of IPOs rising from 120 in 2014-15 to 124 in 2015-16.
Total capital raised fell 11.6% during the year to $78.6 billion (including a 10% rise to $55 billion in secondary offerings and placements by the big banks, such as Westpac).
Revenue from trading services rose 7.7%, while revenue from clearing and settlement operations rose 11.1%.
Revenue from the company’s biggest division, the derivatives and OTC markets business, rose 4.7% to $265.8 million. This division accounts for 36% of total group revenue. ASX shares eased 0.7% to $49.01.
