Ann: Half-Year Results Presentation, page-5

I have just listened to the webcast and had a good read of the financials. My takeaways are as follows
1. ASX has a 57% NPAT margin and a 77% EBITDA margin. These are outstanding numbers. I am not aware of any other business in Aust with margins like this.
2. Revenue grew more than expenses (widening jaws)
3. Profit grew less than revenue due to increased D & A
4. Revenue growth occurred in every revenue category PCP (OTC shrunk H2 last year verses H1 this year)
5. Expenses growth is still forecast to be 4% as some labor costs get capitalised in H2.
6. CAPEX guidance has not changed.
7. Major upgrade of IT systems will be undertaken within the $40 to $50m per annum CAPEX spend.
8. CFR (Council of Financial Regulators) will make a decision on clearing market structure and whether there should be competition to the ASX. The CEO said that with a 10 to 12% ROC in this business, there are no monopoly rents. CHI-X use the facility for free.

My summary
A good well run business that is well capitalised.

HT1