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ASX on back foot after costs blowout due to technology, regulation

James Eyers

ASX said it would trim headcount, cut consultants and look to sell down its equity stake in the start-up it used for the failed project to replace CHESS, as it pledged to get a blowout in expenses under control. Growing regulatory commitments and technology modernisation triggered an unsustainable increase in costs, depressing profit in the first half.

ASX shares fell more than 4 per cent to $64.94 just after midday on Friday after it missed expectations on earnings and cut its interim dividend. That came after profit fell 7.8 per cent to $230.5 million for the six months to December. This was caused by a 26.9 per cent surge in expenses compared to the previous first-half.

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James Eyers writes on banking, payments and fintech. He is a former legal and investment banking editor at the AFR, has degrees in commerce and law from UNSW, and is co-author of Buy now, pay later: The extraordinary story of Afterpay Connect with James on Twitter. Email James at jeyers@afr.com.au

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    Original URL: https://www.afr.com/companies/financial-services/asx-on-backfoot-after-costs-blowout-due-to-technology-regulation-20240216-p5f5fo