The ASX Ltd (ASX: ASX) share price is sliding today.
Shares in Australia's largest securities exchange closed yesterday trading at $64.00. In morning trade on Friday, shares are changing hands for $63.00 apiece, down 1.5%.
For some context the S&P/ASX 200 Index (ASX: XJO) is up 0.9% at this same time.
This underperformance follows the release of ASX's full-year financial results for the 12 months ending 30 June (FY 2024).
Here are the highlights.
ASX share price sinks on sliding profits
- Record operating revenue of $1.03 billion, up 2.4% from FY 2023
- Underlying net profit after tax (NPAT) down 3.4% from last year to $474.2 million.
- Total expenses of $429.5 million, up 14.7% year on year, in line with guidance
- Fully franked final dividend of $1.068 cents per share (cps), down 4.7% from the prior final ASX dividend
What else happened with ASX in FY 2024?
The ASX share price is catching some headwinds today with the record FY 2024 revenue coming amid mixed performance across ASX's four lines of business.
The company reported growth in its Markets and Technology & Data, but this was offset by lower contributions from its Listings and Securities & Payments businesses.
The 3.4% year-on-year profit decline was largely driven by the 14.7% increase in operating expenses. The higher costs were partially offset by an 8.3% increase in net interest income, boosted by rising interest rates.
Eligible investors can expect to receive the final dividend of $1.068 per share on 20 September.
The total dividends paid out in FY 2024 come to $2.08 per share. That's down 8.9% from FY 2023 due to the decline in profits and a lower dividend payout ratio of 85% in FY 2024 compared to 90% in FY 2023.
What did management say?
Commenting on the results that have so far failed to lift the ASX share price today, CEO Helen Lofthouse said:
As we move into the second year of our five-year strategy, I'm pleased that ASX continues to demonstrate resilient financial performance, which was achieved amid challenging market conditions and during a period of transformation for the Group.
Our record FY24 operating revenue of $1.03 billion was driven by solid growth in our Markets and Technology & Data divisions
The ASIC proceedings
Addressing the Australian Securities and Investment Commission (ASIC) proceedings launched this week against the company, which saw the ASX share price close down 3.7% on Wednesday, Lofthouse said:
This week, ASIC filed civil proceedings against ASX Limited in relation to certain statements made by ASX in February 2022 regarding the previous CHESS Replacement project. We recognise the significance and serious nature of these proceedings and are now carefully reviewing and considering the allegations.
We play a critical role at the centre of Australia's financial markets and continue to focus on supporting and delivering for our customers. We are committed to taking ASX forward, and the progress we've made in FY24 underscores our ongoing commitment to the execution of our strategy.
What's next?
Looking at what might impact the ASX share price in the year ahead, management noted, "We are starting to see signs of a return of IPO activity, with the listing of Guzman Y Gomez (ASX: GYG ) being a recent high-profile example."
The company forecasts FY 2025 total expense growth within its previously stated range of between 6% and 9%. Capital expenditure guidance is $160 million to $180 million, which the company said would primarily support its ongoing technology modernisation.
Management said it remained focused on delivering an underlying return on equity (ROE) of between 13.0% and 14.5%.
ASX share price snapshot
With today's intraday losses factored in, the ASX share price remains up just over 1% since this time last year, not including the two dividend payouts.
