ASX Delivers 11% Revenue Growth Amid ASIC Inquiry and Tech Overhaul
ASX Limited reported robust half-year results with an 11.2% rise in operating revenue and a steady net profit, while advancing its technology upgrade and responding to regulatory scrutiny.
- Operating revenue up 11.2% to $602.8 million
- Statutory net profit after tax increased 8.3% to $263.6 million
- Expenses rose 20% due to ASIC Inquiry costs and strategic investments
- Technology modernisation program progressing with CHESS Release 1 planned for April 2026
- ASX commits to governance reforms and additional capital accumulation by mid-2027
Strong Financial Performance Across Business Units
ASX Limited has reported a solid set of half-year financial results for the six months ending 31 December 2025, with operating revenue climbing 11.2% to $602.8 million. This growth was broad-based, driven by all four of its core business lines, notably cash market trading and futures, reflecting the diversified strength of its portfolio. Statutory net profit after tax rose 8.3% to $263.6 million, underscoring the company’s ability to convert revenue gains into bottom-line growth despite rising costs.
The company’s interim dividend was set at 101.8 cents per share, fully franked, representing a payout ratio of 75%. This is at the lower end of ASX’s updated guidance range, signalling a cautious approach to capital distribution amid ongoing investments and regulatory demands.
Rising Expenses Reflect Strategic Investments and Regulatory Response
Total expenses increased by 20%, primarily due to costs associated with the Australian Securities and Investments Commission (ASIC) Inquiry and investments in key programs such as the Accelerate initiative. Excluding ASIC Inquiry-related expenses, core business expense growth was a more moderate 12.1%. The company is balancing the need to invest in technology and risk management while maintaining operational efficiency.
ASX’s Managing Director and CEO Helen Lofthouse highlighted that the company is actively responding to the ASIC Inquiry by implementing a dedicated governance structure for its clearing and settlement facilities. This move aims to enhance independence and strengthen financial system stability, while preserving the benefits of being part of the ASX Group.
Technology Modernisation and Leadership Transition
ASX is progressing steadily with its technology modernisation program, a critical pillar of its long-term strategy. The upcoming CHESS Release 1, scheduled for April 2026, will introduce a new clearing platform leveraging enterprise cloud and data technologies. This upgrade is expected to position ASX as a future-ready market infrastructure provider.
In leadership news, Clive Triance, Group Executive Securities & Payments, will retire at the end of February, with Andrew Jones stepping in as interim Group Executive. This transition comes as ASX continues to navigate both technological and regulatory challenges.
Positive Market Momentum and Capital Management
Listings activity remains strong, with net new capital quoted reaching $27.3 billion in the half-year, supported by IPOs and secondary capital raisings. The company also noted robust cash market and futures volumes continuing into early 2026, driven by geopolitical volatility and central bank policy expectations.
To meet increased regulatory capital requirements following the ASIC Inquiry, ASX plans to accumulate an additional $150 million in capital by June 2027. This will be funded through a reduced dividend payout ratio and a discounted dividend reinvestment plan operating for at least the next three dividend payments.
Bottom Line?
ASX’s half-year results reflect resilience and strategic adaptation, but the path ahead hinges on successful technology rollout and regulatory reforms.
Questions in the middle?
- How will the ASIC Inquiry costs impact ASX’s long-term profitability and expense trajectory?
- What risks or delays could affect the April 2026 CHESS Release 1 platform launch?
- Who will be appointed as the permanent Group Executive Securities & Payments following the interim leadership?
