ASX underlying net profit after tax (NPAT) fell 3.4 per cent to $472.2 million for the financial year ending June 30, driven by higher operating costs but partially offset by increased operating revenue and net income from interest.

In a note on Friday, the ASX reported a 49.4 per cent jump in statutory NPAT to $474.2 million, supported by the write-off charge from the CHESS Replacement project in the prior corresponding period.

What’s more, the ASX reported record operating income of $1.03 billion, up 2.4 per cent, driven by growth in its markets and technology and data businesses, achieved despite “challenging market conditions”.

"As we enter the second year of our five-year strategy, I am pleased that ASX continues to demonstrate robust financial performance, which has been achieved against the backdrop of challenging market conditions and during a period of transformation for the group," Helen, ASX Managing Director Lofthouse said.

Performance across the ASX's four business lines is "mixed", according to the group.

Markets revenue rose 7.9% to $315.4 million, while technology and data revenue increased 5.9% to $255.1 million, led by higher equity market data spreads and futures and the growth of client relationships at the Australian Liquidity Center.

Lower activity in equity clearing and settlement services led to a 1.1 percent drop in revenue for the securities and payments division, which fell to $255.6 million. In addition, cyclically low activity in the capital markets affected the listings business, which resulted in a 4.8% decrease in total revenue for the division, which brought it to $208.2 million.

Earnings before interest and tax (EBIT) fell 4.8% to $604.8 million, while net interest income increased 8.3% to $76.7 million, led by higher returns on ASX cash balances exposed of rising interest rates.

Expenses rose 14.7% to $429.5 million, driven by higher staff costs for regulatory and technology investments, along with increased equipment and administration costs.

The ASX reiterated that the rate of growth in overall spending for FY2023–2024 is in line with previously stated guidance. The group also expects a lower overall cost growth rate of between 6% and 9% over FY24-25 as a result of ongoing cost management initiatives.

A final dividend of 106.8 cents per share, fully franked, was declared, bringing total ASX dividends for the year to 208 cents per share - a decrease of 8.9 per cent, reflecting the decline in underlying NPAT and a lower dividend payout ratio from 85 percent in FY23–24.

The ASX is moving forward on strategic priorities

The ASX reported "significant progress" in its strategic focus areas of regulatory engagement and technology modernization in FY23-24.

"During FY24, we implemented new processes to track strategic outcomes, renewed senior leadership, increased our risk and technology capabilities, and continued to deepen engagement with stakeholders," Lofthouse said.

"There is still a lot of work ahead of us, but I want to acknowledge the contribution of everyone at the ASX in achieving our vision for a new ASX era."

In June, the ASX shared an indicative technology roadmap that provides a view of major projects, including a CHESS replacement and upgrades to its derivatives trading and clearing platforms.

"During FY24, work undertaken under the roadmap included the provision of new services on the money market trading platform, the migration of multiple data services from legacy systems and the replacement of infrastructure in our data centre," ASX said.

Alongside continued investment in technology modernization related to Horizon 1 of its five-year strategy, ASX said it is also continuing to progress work on customer-focused growth opportunities, including supporting customers in the transition to net zero.

Also, in relation to the Australian Securities and Investments Commission's Federal Court proceedings against the ASX for alleged misleading statements relating to its CHESS replacement project, Lofthouse said the ASX was "carefully reviewing and considering the allegations".

“We play a critical role at the heart of Australia's financial markets and continue to focus on supporting and servicing our customers. We are committed to taking the ASX forward and the progress we have made in FY24 underlines our ongoing commitment to delivering on our strategy,” she said.