Release Date: February 12, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Q: Can you explain the discrepancy between the 20% increase in futures volumes and the 10.5% increase in revenues? A: Helen Lofthouse, CEO: The slower revenue growth is due to a change in product mix. The rates products, which have lower price points, saw strong growth. This affected the average fee due to product and cost mix, as well as rebates.
Q: How should shareholders evaluate cost growth given the significant increase in CapEx and other expenses? A: Andrew Tobin, CFO: The onerous lease provision is a one-off item due to early lease termination. Despite this, we maintained flat cost growth compared to last year, focusing on workforce optimization and strategic procurement.
Q: Is the decline in electricity derivatives revenue due to seasonality or other factors? A: Helen Lofthouse, CEO: The decline is primarily due to lower volatility in electricity prices, though there is some seasonality. We expect the electricity market to grow due to ongoing electrification.
Q: With the first half costs being lower, are you expecting to hit the top or bottom end of your guidance for the second half? A: Andrew Tobin, CFO: We are comfortable with our guidance range of 6-9% expense growth. Known factors like depreciation and technology investments will increase costs in the second half, but we are not refining guidance yet.
Q: Can you discuss the revenue opportunity for the new debt market activity services? A: Helen Lofthouse, CEO: While we have forecasts, we will share more as they become material. The service launches in the second half, but significant revenue impact is not expected immediately.
Q: Are there any headwinds from potential policy changes in clearing and settlement services? A: Helen Lofthouse, CEO: The pricing policy for cash equities clearing and settlement services is being formalized. We don't expect material revenue impact, but it will continue to constrain pricing flexibility.
Q: Can you elaborate on the spread increase from 10 to 15 basis points for participant balances? A: Andrew Tobin, CFO: The increase is due to emerging opportunities as interest rates and curves move. The spread is not locked in and depends on market conditions.
Q: How is ASX positioned in terms of funding for its capital profile? A: Andrew Tobin, CFO: We have significant funding flexibility with retained earnings, a $275 million corporate bond, a $300 million undrawn bank facility, and a $60 million equipment financing lease.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
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