FundConnect pushes ASX profit down

ASX financial markets chief executive

28 August 2003
| By Freya Purnell |

TheAustralian Stock Exchange(ASX) has announced a profit of $57.8 million for the year ending June 30 2003, slightly down on last year’s profit of $59.1 million, following the one-off write-down of $3.5 million for the aborted ASX FundConnect hub project.

The ASX achieved its profit on the back of reported record operating revenue of $206.8 million, plus interest and dividend revenue of $8.0 million, up from $5.3 million with $1.5 million in dividends from ASX’s investment inIress Market Technology.

While recurring operating expenses almost matched those for the previous year, up 0.2 per cent to $127.3 million, an additional $5.05 million related to the winding up of FundConnect pushed operating expenses to $132.4 million.

The ASX pulled out of the FundConnect project for the development of a managed funds transaction hub in May, at the time saying that the return on investment was uncertain and it was unwilling to take the risk.

ASX deputy managing director Angus Richards said that the time taken for any hub to reach critical mass was a major concern, especially with three other players -IWL, Ausmaq and Investmentlink - in the market.

ASX Perpetual Registrars, while winning new mandates from several additional clients during the year and producing a 42 per cent increase in earnings before interest, tax, depreciation and amortisation to $12.1 million, it only contributed $0.9 million compared with $2.0 million for the previous year. This drop was attributed to depreciation and amortisation of new technology systems and goodwill charges.

On the results, ASX managing director and chief executive Richard Humphry said while 2002/03 was an extremely difficult year for financial markets, the results were “pleasing” and record activity levels in equities for July and August to date was a demonstration of renewed investor confidence.

Read more about:

AUTHOR

Recommended for you

sub-bgsidebar subscription

Never miss the latest news and developments in wealth management industry

MARKET INSIGHTS

This verdict highlights something deeply wrong and rotten at the heart of the FSCP. We are witnessing a heavy-handed, op...

13 hours ago

Interesting. Would be good to know the details of the StrategyOne deal....

4 days 18 hours ago

It’s astonishing to see the FAAA now pushing for more advisers by courting "career changers" and international recruits,...

3 weeks 2 days ago

Insignia Financial has made four appointments, including three who have joined from TAL, to lead strategy and innovation in its retirement solutions for the MLC brand....

2 weeks 4 days ago

A former Brisbane financial adviser has been charged with 26 counts of dishonest conduct regarding a failure to disclose he would receive substantial commission payments ...

3 days 16 hours ago

Pinnacle Investment Management has announced it will acquire strategic interests in two international fund managers for $142 million....

2 days 19 hours ago