London Stock Exchange Group profit soars on integration of Russell Investments

Jessica Morris
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Europe's oldest independent bourse also said revenue rose 90 per cent (Source: Getty)

Shares rose 2.44 per cent after the group's first half earnings were boosted by its recently acquired global indexes business FTSE-Russell.

The figures

The London Stock Exchange Group (LSEG) said pre-tax profit in the six months ending 30 June rose 20 per cent to £205.2m, mainly due to strong growth in its global indexes business FTSE-Russell.

Adjusted operating profit rose 27 per cent to £366.1m, from £288.8m during the same period a year earlier.

Europe's oldest independent bourse said revenue rose 90 per cent to £1.16bn, from £611.5m during the same period a year earlier.

The group also hiked its interim dividend by 11 per cent to 10.8p per share.

Why it's interesting

The Greek debt crisis, Chinese stock market turmoil, and some heavy hints regarding an interest rate rise by the Bank of England and the US Federal Reserve have provided plenty of drama in equity markets lately.

In December last year LSEG bought the Russell business - and in May it launched FTSE Russell, the new integrated name for the combined businesses of the FTSE Group and Russell indexes. Today is said it was making "good progress with integration and development" of this.

Earlier this year the LSEG appointed Donald Brydon as its new chairman. He already had an impressive CV, having served as chairman of Royal Mail as well as spending 15 years at Axa.

It also emerged that the group's biggest shareholder, Borse Dubai, was selling its entire stake in the company, leaving Qatar Investment Authority as the LSEG’s biggest shareholder with a 10.3 per cent stake.

Read more: Why the London Stock Exchange's digital infrastructure needs a backup - in Leeds

What the London Stock Exchange Group said

Xavier Rolet, the group's chief executive, said:

Our global indexes business, FTSE Russell, has shown strong growth, and there have been positive underlying results in other information services products, as well as capital markets and Italian Post Trade.

LCH.Clearnet has made further solid progress in the development of its OTC clearing services. Despite currency headwinds, our diversified global business has delivered good returns.

As a leading international, open access market infrastructure business we continue to see attractive opportunities for growth in a changing regulatory and competitive landscape.

In short

It looks like the LSEG's acquisition of the Russell Investments in December last year is beginning to pay off - with it helping lift revenues as much as 90 per cent.

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