2024-02-15 23:39:10 ET
ASX Limited (ASXFF)
Q2 2024 Earnings Conference Call
February 15, 2024, 07:00 PM ET
Company Participants
Helen Lofthouse - MD and CEO
Andrew Tobin - CFO
Conference Call Participants
Ed Henning - CLSA
Simon Fitzgerald - Jefferies
Andrew Buncombe - Macquarie
Kieren Chidgey - Jarden
Andrei Stadnik - Morgan Stanley
Siddharth Parameswaran - JPMorgan
Scott Russell - UBS
Nigel Pittaway - Citi
Presentation
Helen Lofthouse
Good morning and welcome to ASX’s financial results briefing for the first half of the financial year ending 30 June 2024.
Thank you for taking part in this virtual presentation. I hope you're well wherever you're joining us. My name is Helen Lofthouse, and I'm the Managing Director and CEO of ASX. I'm pleased to be presenting these results today, along with ASX's Chief Financial Officer, Andrew Tobin.
I'd like to acknowledge the Gadigal People of the Eora Nation, who are the traditional custodians of the country where I'm speaking today. We recognize their continuing connection to the land and waters, and we thank them for protecting this coastline and its ecosystems. We pay our respects to elders past and present, and we extend that respect to any First Nations people present today.
Today's presentation will cover four areas, and then Andrew and I will take your questions. So I'll begin with an overview of the results for the first half of FY '24 and our focus areas. Then Andrew will provide a more detailed view of our financial performance, including each line of business. And I'll then update you on how we're tracking on our strategy, and I'll provide some observations on the market outlook and its implications for ASX. And we'll finish with Q&A.
I cover four topics in the first part of today's presentation. Some highlights and commentary on our results. An update on our two near-term focus areas of regulatory commitments and technology modernization. And I'll provide some detail on the business rationalization actions which we've been taking.
Turning now to our financial highlights. ASX demonstrated solid revenue growth in the first half of FY24, despite challenging markets. We delivered $511.7 million of revenue, which is a record for the first half of a financial year. Our diversified business model supported the revenue performance, with growth in markets and technology and data offset by a decline in our listings and securities and payments businesses.
Total expenses were up by 26.9% compared to the first half of FY23, and 10% compared to the second half of FY23. It's important to note that the significant increase in investment in our key focus areas began after the first half of FY23, and therefore the second half of FY23 is a better comparable. The first half of FY24 figure also includes several items that are one-off in nature, which Andrew will explain in more detail shortly. Clearly, this level of growth is not sustainable, and reflects the critical demands placed upon ASX in the past year, and the investment required to support our long-term sustainability....
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ASX Limited (ASXFF) Q2 2024 Earnings Call Transcript