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ASX Ltd Just Reported Profit Growth Of 5%

This morning, ASX Ltd (ASX: ASX) revealed its financial results for the half year to 31 December 2017.

This morning, ASX Ltd (ASX: ASX) revealed its financial results for the half year to 31 December 2017.

ASX Ltd is the company that runs the Australian Stock Exchange.

The results below are comparing against the half year to 31 December 2016. Here are some of the main points:

  • Operating revenue increased by 5.8%, or $22.4 million, to $409 million
  • Day to day trading, or EBITDA, increased by 5.5% to $312.8 million (What the heck is EBITDA?)
  • Profit per share up by 5% to 119.1 cents
  • Dividend per share up by 5.1% to 107.2 cents

The company said that the result was driven by strategic initiatives which are progressing across all businesses. ASX CEO Dominic Stevens said “ASX has achieved a strong result for the first half of 2018 financial year”.

ASX has achieved continued success in attracting technology and foreign company listings, which adds more diversity to the list of shares to choose from. There were 18 foreign listings and 11 technology listings. According to the ASX the market capitalisation of the ASX-listed tech sector has grown by 140% in the last three years.

Mr Stevens said that new listings were “drawn to Australia’s large and deep pool of investable capital, expertise in funding early stage enterprises and robust regulatory environment.”

The company became the bank bill swap (BBSW) rate administrator at the start of January 2017, it will be starting new methodology in April 2018. The new futures trading platform is attracting offshore customers.

Management said that the company has selected distribute ledger technology to replace CHESS, it’s progressing towards full development and implementation.

ASX’s goal is to make business easier for our customers. To do that, we must be technologically out in front. – Stevens 

ASX management also said that it is looking at the idea of electronic property settlement. Mr Stevens said “ASX is working with InfoTrack, Australia’s leading provider of electronic conveyancing technology and services, to investigate creating an ‘electronic lodgment network operator (ELNO) and whether we can leverage our existing infrastructure to generate efficiencies for customers.

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