Bloomberg News

LSE Profit Gains on Capital Markets, Post-Trade Services Revenue

November 17, 2011

Nov. 16 (Bloomberg) -- London Stock Exchange Group Plc, Europe’s oldest independent bourse, said first-half profit gained 87 percent, boosted by revenue from capital markets and post-trade services.

Net income for the six months ended Sept. 30 climbed to 116.1 million pounds ($183 million) from 62.2 million pounds in the comparable period a year earlier, the exchange said in a Regulatory News Service statement today. Total income, which includes money earned from deposits at its Italian central counterparty, rose 20 percent to 386.5 million pounds.

Chief Executive Officer Xavier Rolet has been trying to diversify LSE’s business and stem its loss of market share to alternative trading systems such as Bats Europe and Chi-X Europe Ltd. He’s in exclusive negotiations to buy LCH.Clearnet Ltd., the U.K.’s largest clearing house, after he was forced to scrap a planned takeover of the Canadian exchange.

LSE scrapped its bid for TMX Group Inc. earlier this year after failing to win support from TMX shareholders. Analysts say the failure has made the U.K. exchange a takeover target for rivals such as Nasdaq OMX Group Inc.

Sales from capital markets, where LSE makes money from company listings and trading, rose 13 percent to 159.8 million pounds, while that from post-trade services increased 8 percent to 52.4 million pounds.

Information-services revenue climbed 6 percent to 89 million pounds and sales from technology services added 1 percent to 24.8 million pounds.

--Editor: Andrew Rummer

To contact the reporter on this story: Nandini Sukumar in London at nsukumar@bloomberg.net

To contact the editor responsible for this story: Andrew Rummer at arummer@bloomberg.net


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