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ASX Ltd shares on the move after steady results

The ASX Ltd (ASX: ASX) share price is on the move in early trade after posting a $250.4 million net profit after tax.

ASX shares opened slightly up, but have since dipped and are down 0.42% at the time of writing.

What is moving the ASX share price today?

In its half-year results for FY 2020, the ASX reported operating revenue up 7.1% on the prior corresponding period (pcp) to $454.9 million.

There were several big earnings drivers for the exchange, with equity trading value up 8.9%. Futures volumes climbed 9.9% and technical services connectivity jumped 8.1% in the first half.

ASX also reported a 13.5% increase in information services data and index revenue.

The group’s earnings before interest and tax jumped 6% on pcp to $315.1 million during the half-year while net profit climbed 1.8% higher.

Earnings per share climbed 1.7% to 129.3 cents per share (cps) while dividends per share were also up 1.7% to 116.4 cps.

Strong equity and futures trading were key in a successful half-year for the Aussie exchange. Total capital raised totalled $42 billion for the half, compared to $62 billion in a bumper 1H 2019. 

Futures contracts climbed to $86 million, up from $78 million in 1H 2019, while growth in Austraclear deposits also helped. The average balance in Austraclear securities holdings grew by 3.69% to $2,078 billion in the first half.

What’s the strategy for the exchange going forward?

Technology remains at the core of the ASX strategy going forward and could be the key to unlocking further share price growth.

The group is working to replace CHESS with upgraded security, resilience and performance. The ASX is anticipating a go-live on the new system in April 2021 following industry-wide testing this year.

Lower IPO volumes and a low-interest-rate environment have changed the group’s earnings profile. However, the exchange did report strong secondary capital raising in 1H 2020 which reflects issuance by the ASX banks.

Foolish takeaway

The ASX share price will be one to watch today amid a number of big names posting their results. Telstra Corporation Ltd (ASX: TLS)AMP Ltd (ASX: AMP) and Woodside Petroleum Ltd (ASX: WPL) are just some of the other ASX 50 companies that have reported today.

Here are 3 more ASX shares that I'll be watching in the February earnings season.

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Motley Fool contributor Kenneth Hall has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Telstra Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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