LSE Group revenues rise 18%
13 Nov 2014
Revenue at London Stock Exchange Group was up 18 per cent as its diversification strategy continued to bear fruit, the company said today, Reuters reported.
Revenue for the six months to 30 September was up at £592.6 million from £504.2 million a year earlier.
Operating profit - adjusted to account for the impact of the acquisition of a majority stake in clearing house LCH Clearnet and other factors - increased 24 per cent at £286.1 million. (See: LSE revises offer for majority stake in LCH Clearnet)
Under chief executive Xavier Rolet, the LSE had sought to broaden its earnings, as it moved into strong potential growth areas like post-trade and information services.
In a recent move the company agreed to a $2.7-billion takeover of US index compiler and asset management group Frank Russell, in its largest ever acquisition (LSE group acquires US stock market indices provider Frank Russell).
According to LSE, it was on track for completion of the acquisition before the end of 2014 and had received approval from the Competition and Markets Authority.
It added, a third of the newly enlarged group's revenue would come from North America.
Revenue at all the LSE's divisions in the first half, was up with LCH Clearnet seeing a 49-per cent rise due to growth in both over-the-counter and listed products clearing.
Its hares opened almost 2 per cent higher today.
Rolet said, "We have produced a strong set of first half results, with revenue up 18 per cent, reflecting increases across each of our business areas. In particular, our capital markets division delivered good growth in both primary and secondary market activities, FTSE revenues grew 10 per cent and LCH.
"Clearnet also performed well with increases in OTC and listed product clearing revenues. Operating expenses have remained well controlled and we are seeing benefits of the cost reduction programme at LCH Clearnet.''
