ASX (ASX) major investment flagged, slight beat to 1H15 Estimate
ASX (ASX) major investment flagged, slight beat to 1H15 Estimate. ASX has delivered a solid 1H15 result, with underlying EPS 2.5% ahead of our estimate and with broad revenue growth returning to the business. The company flagged it will embark on a major upgrade of its trading and post-trading platforms over the next 3-4 years at a capex cost around $30-$40m per annum. In addition a one-off $6.5m pre-tax charge around some restructuring activities will flow through 2H15, this charge will not impact the 2H15 dividend.All the divisional revenue was largely in-line with our estimate apart from: Listings achieved $88m in revenue vs our $83m estimate, aided by the strong IPO activity. Outlook: No quantitative guidance for the full year provided. Today's share price reaction: Down 0.9% to $39.80 (12.59 pm). Recommendation: Hold rating likely to be retained. Read more here (VIEW LINK)
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