ASX Limited, operator of Australia’s main stock exchange, reported first-half net income fell as reduced stocks trading hurt revenue, Bloomberg News reported on Thursday.
Group revenue fell by 3.3 per cent from a year earlier, although performance between the first and second quarters varied significantly, the Sydney-based company said in a regulatory statement.
Net income in the six months through December 31 dropped by 2.5 per cent to A$171.1m ($176m) from a year earlier, the company said. ASX was expected to report profit of A$169.5m, according to the average of four analysts’ estimates compiled by Bloomberg.
ASX is fighting to stave off competition in equity trading from Chi-X Australia Pty and so-called dark-pool operators as volumes decline around the world.
ASX this month won its battle to maintain its monopoly on the clearing and settlement of equity trades after the government delayed opening up competition for at least two years.
“The first half of the financial year remained challenging as trading activity in equity markets continued to be near cyclical lows and well below the levels of the previous year,” said ASX Chief Executive Officer, Mr. Funke Kupper.
ASX shares fell by 3.4 per cent to A$35.76 at the 4:10 p.m. close of trading in Sydney, the biggest drop since August.
Revenue from the company’s cash-market activities slumped by 18 per cent to A$54.9m as the average daily value traded on ASX fell by 24.5 per cent. That was more than the 19.9 per cent decline in the daily value of equities traded across all venues, both on and off-market, according to ASX.