ASX 200 Futures Edge Lower Amid Mixed Wall Street Session
The Australian equity market started the morning on a cautious note. ASX 200 futures slipped 27 points or 0.30%. Wall Street saw the S&P 500 close 0.73% higher overnight. Large technology stocks drove the rise, with Apple up 5.0%, Amazon up 4.0% and Tesla gaining 3.6%. The equal-weighted S&P 500 closed down 0.22%. More stocks fell than rose, highlighting underlying market softness.
ASX 200 Chart as of 11:55 AM AEST
Light & Wonder Disappoints, Plans Nasdaq Delisting
Light & Wonder reported second-quarter revenue at $809 million, 4.9% below estimates of $851.1 million. Adjusted EBITDA reached $352 million, narrowly ahead of forecasts. Guidance for full-year 2025 projects adjusted EBITDA of $1.43–1.47 billion, slightly above expectations. Adjusted NPATA for calendar 2025 is guided at $550–575 million, falling 8.1% short of Macquarie estimates which stood at $612 million. The company said earnings would skew toward the second half, with only low double-digit third-quarter growth. Momentum is expected to build into the December quarter. The Board approved a plan to move to a sole listing on the ASX. The Nasdaq delisting is scheduled by end of November 2025.
Light & Wonder Earnings Call Highlights
Management confirmed the ASX-only listing aims to optimise shareholder value and better align with long-term growth. Litigation in Nevada and Australia is set for trial in the first half of 2026, with positive rulings received recently. Updated 2025 EBITDA guidance now includes a $65 million contribution from Grover. The buyback program increases from $1 billion to $1.5 billion. At least half of the $950 million remaining will be used before the Nasdaq delisting. Grover integration “progressing well” with entry to Indiana slated for the coming months. Recent tax changes expect to deliver $40–50 million in annual cash savings. Guidance for NPATA was revised lower due to Grover’s modest accretion and higher interest costs from share repurchases.
Airbnb Beats on Earnings, Flags Caution Ahead
Airbnb posted second-quarter revenue of $3.10 billion, up 13% year-on-year, 2.3% ahead of expectations. EPS gained 20% to $1.03, versus $0.93 estimated. Gross Booking Value hit $23.5 billion, a 3.0% beat. Adjusted EBITDA climbed 17% to $1.04 billion, with margins beating by 2 percentage points. Third-quarter revenue guidance is in the $4.02–$4.10 billion range, broadly in line. The company expects Q3 adjusted EBITDA to come in above $2.0 billion. Management told investors: “we expect a tougher year-over-year comparison toward the end of the quarter. This dynamic will continue into Q4, putting pressure on growth rates later in the year.” Shares dropped 6.3% after hours.
AMP Reports Mixed First-Half Results
AMP reported first-half revenue of $632 million, 0.6% below consensus. Assets under management increased by 3.7% to $153.9 billion. Underlying NPAT was $131 million, missing consensus by 5.1%. Platforms NPAT increased 7.4% to $58 million. Platforms AUM rose 4.3% to $83.2 billion, with platform margins at 40 basis points. The interim dividend was set at 2 cents per share. For the full year, AMP guided margins and costs largely in line with broker forecasts. Platform AUM-based revenue margin is 43 basis points. Superannuation and investments expect 63 basis points. AMP bank’s net interest margin matches the first half at 1.30%. Controllable costs are projected at $600 million.
ASX Faces Regulatory Scrutiny, Shares Slide
ASX reported plans to incur $25–35 million in additional operating expenses in FY26 after a compliance assessment by ASIC launched in June. On Wednesday, ASX assigned details of TPG Capital’s acquisition of Infomedia to the wrong ticker, leading to a 5.0% drop in TPG Telecom shares. In early trading, ASX shares tumbled 10%. ASIC is reviewing Cboe Australia’s listing market application to enhance competition and attract foreign capital. Foreign market access expands to Cboe US and Canada, and the Canadian Securities Exchange. ASIC licensed FCX’s tokenised market for private firms, supporting bookbuilds. Broader reforms aim to promote fairer rules and faster IPOs.
REA Group Results Prompt Divergent Broker Views
REA shares rose 6.9% following an in-line FY25 result and a stronger dividend. JPMorgan downgraded the stock from Overweight to Neutral and lowered the target to $240.00. Macquarie maintained Neutral, trimming the target to $255.00. Jarden kept an Underweight view, raising the target to $219.00. Brokers cited easing margin worries but flagged India losses and valuation concerns.
Liontown Announces $266 Million Capital Raise
Liontown is seeking to raise $266 million through an institutional placement at $0.73 per share, marking a 13.6% discount. The raise will bolster liquidity as lithium prices remain under pressure. The funds will also support the ramp-up of Kathleen Valley. All board members have pledged to participate in the share purchase plan.
Electro Optic Systems Lands Major Defence Contract
Electro Optic Systems has surged 66% in the past three sessions. On Tuesday, it announced the world’s first export order for a 100-kilowatt class laser defence system. The contract, worth about $125 million, was secured from a European NATO customer. The order is significant for a company with a market cap of around $500 million before the rally. The development drew comparisons with Droneshield, another defence technology player, and reinforced optimism in Australia’s advanced manufacturing sector.
