Corporate: The ASX is investing in its technology; but still made a $250m half-yearly profit
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The ASX (ASX:ASX) released its half-yearly results this morning, announcing solid financials and its ongoing mission to overhaul its technological systems.
The exchange made a statutory profit of $250.4m, a $4.3m increase from the prior corresponding period. Revenue came in at $454.9m, which the ASX said reflected growth from strong market activity and its core businesses.
This was despite capital expenditure of $43.4m, which was roughly in line with full-year guidance of $75-80m.
CEO Dominic Stevens said the figures were a solid result, but made it clear these days would only continue with longer term investments.
“The ASX continued to deliver on its reliable earnings track record while strengthening its foundations and making significant strategic progress,” he said.
“We are investing in the long-term sustainability of our business by strengthening our technology, risk and governance foundations and upgrading our operating and service capabilities to support growth opportunities.”
One of these upgrades includes rolling out a new share trading system after over 25 years using CHESS. The ASX previously said this will go public around March-April 2021; today it clarified it was on track to begin testing in July.
But the exchange noted it was not just about upgrading its CHESS system but its entire technology stack including its own databases and communications infrastructure.
“The replacement of these with modern systems will enable ASX to move faster in meeting customers’ needs for change, reporting requirements, regulator inquiries and cyber updates,” Stevens said.
Abundant Produce (ASX:ABT) fell by over 40 per cent this morning on news it was looking to delist. The directors blamed insufficient liquidity, compliance obligations and costs as well as the fact shares were trading lower than the company’s underlying value. The company expects to be delisted next month.