ASX Revenue Climbs 11% to $610 Million as Dividend Cuts and Costs Bite

Strong Financial Performance Despite Regulatory Challenges

ASX Limited has delivered a robust half-year financial performance for the period ending 31 December 2025, with revenue climbing 11.0% to $610.4 million and net profit attributable to owners increasing by 8.3% to $263.6 million. Underlying net profit after tax rose a more modest 3.9% to $263.6 million, reflecting ongoing investments and regulatory costs.

The company’s diversified business lines; Listings, Markets, Technology & Data, and Securities & Payments; all contributed to revenue growth, with particularly strong momentum in futures and cash market trading volumes. This growth was supported by increased market volatility and sustained interest in listings, despite a slight net decrease in the number of listed entities.

Dividend Policy Adjusted Amid Capital Management Initiatives

ASX announced an interim fully franked dividend of 101.8 cents per share, down 8.5% from the prior corresponding period. This reflects a strategic reduction in the dividend payout ratio to between 75% and 85% of underlying net profit after tax, down from the previous 80% to 90% range. The move is part of a broader capital management plan designed to accumulate an additional $150 million in net tangible assets by June 2027, in response to a capital charge imposed following an ASIC inquiry.

The company’s Dividend Reinvestment Plan (DRP) will continue to apply, now with a 2.5% discount to encourage shareholder participation and support capital accumulation.

Leadership Transition and Board Renewal

In a significant leadership development, Managing Director and CEO Helen Lofthouse announced her intention to step down in May 2026 after 11 years with ASX, including four years as CEO. Her departure coincides with the imminent go-live of the CHESS replacement project, a major technology modernisation initiative targeting April 2026. The Board is conducting a comprehensive search for her successor, considering both internal and external candidates.

The Board itself has seen further renewal with the appointments of Anne Loveridge AM and Deidre McGrath during the half-year, alongside the retirement of long-serving directors Melinda Conrad and Peter Nash.

Regulatory Inquiry and Strategic Reset

ASX continues to address the findings of an ASIC-appointed expert Inquiry Panel, which assessed the Group’s governance, capability, and risk management frameworks. ASX has agreed to a strategic package of actions with ASIC, including a reset of the Accelerate Program, enhanced governance and independence of clearing and settlement functions, and the aforementioned capital charge.

Operating expenses rose 20% to $264.3 million, driven by inquiry-related costs and increased investment in key programs such as Accelerate and technology modernisation. Despite these costs, underlying return on equity remained steady at 13.5%.

Outlook and Market Context

ASX’s financial position remains strong, with net assets increasing slightly to $3.9 billion. The company continues to hold sufficient regulatory capital and financial resources to meet all licensing requirements. Market volatility and listing activity remain key factors influencing ASX’s performance, with the company well positioned to capitalise on ongoing momentum in Australia and New Zealand’s financial markets.

Investors will be watching closely as ASX navigates the final stages of the ASIC inquiry, the CEO transition, and the critical CHESS project rollout, all of which will shape the Group’s trajectory in the coming years.