GUNER | NOMURA
We were pleasantly surprised by the announcement of further cost cuts. Going forward, we expect further positive newsflow in regards to both cost reductions and organic/inorganic growth initiatives. While these bode well for long-term prospects, we did note that management stated that market conditions would remain testing over the near term.
NIC CLARKE | CHARLES STANLEY SECURITIES
We believe that the revenue trends look pretty bleak for the LSE with new MTFs (multilateral trading facilities) like Chi-X and BAT taking market share and putting pressure on tariffs and therefore margins. Trading on around 12x 2010 earnings we lower our recommendation from Hold to Reduce. We prefer ICAP which trades on a similar multiple.
MICHAEL VINCIQUERRA | BMO CAPITAL MARKETS
While data charges were about flat on little change in professional terminals subscribers, the company’s ‘other’ technology and information service revenue jumped 21 per cent versus the September period. Overall, the results were positive versus our expectations and we will likely need to adjust a couple of line items modestly higher.